Raw mats cost manufacturers 12% more than last year

OTTAWA — Monthly prices for manufactured goods at the factory gate were up in April, as prices for petroleum and primary metal products increased. Raw materials prices also increased significantly in April compared to 2005 as a result of higher prices for crude oil and non-ferrous metals.

Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were up 1.3 percent from March to April, reports Stats Canada.

The Raw Materials Price Index (RMPI) was up 5.7 percent from March to April, following an increase of 0.9 percent in March and due primarily to higher prices for crude oil and non-ferrous metals.

Compared to April of last year, raw materials cost factories 12.9 percent more, up significantly from the year-over-year change of 5.3 percent in March.

Petroleum and coal products prices increased 9.6 percent compared to March. If those product prices had been excluded, the IPPI would have only increased 0.5 percent overall.

Prices for primary metal products rose 6.4 percent, the largest increase observed since February 2004.

Prices for pulp and paper products, non-metallic mineral products as well as metal fabricated products also increased in April but to a much lesser degree, says Stats Can.

However, prices for motor vehicles and other transport equipment were down 0.6 percent from March, due primarily to a stronger Canadian dollar. Lumber and other wood products decreased 1.0 percent from March to April, mainly due to an ample supply of softwood lumber. Prices for chemical products declined 1.1 percent as lower prices were recorded for synthetic resins.

Prices for meat, fish and dairy products, fruit, vegetable and feed products as well as machinery and equipment also declined in April, according to Stats Can.

Finished goods prices increase:

On a monthly basis, prices for finished goods were up 0.6 percent from March. However, compared with April 2005, prices for finished goods remained unchanged. Higher prices for petroleum products, tobacco products, chemical products, fruit, vegetable and feed products, furniture and fixtures and rubber, leather and plastic fabricated products were offset by lower prices for motor vehicles, electrical and communication products, lumber products, machinery and equipment and meat, fish and dairy products.


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