Falling oil prices drag industrial and raw materials prices lower than expected
Statistics Canada reported a much worse decline than expected Raw Materials Price Index (RMPI) and Industrial Product Price Index (IPPI).
RMPI declined 2.6% from January to February, lead by a 9.4% drop in crude oil prices. Raw material pricing in Canada is down 15.1% year-over-year on a 31.3% decline in crude oil and 6.8% decline in industrial metals.
IPPI (which includes refined petroleum products) also fell 1.1% in February (month/month), dragged lower on an 8.3% decline in gasoline prices and 10.6% decline in petrochemical products. However, IPPI fell only 1.4% year/year despite a 21.4% drop in energy products and 10.5% decline in metal products.