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Costs lower, prices higher for manufacturers

Published by Steve Coleman on October 05, 2011

Motor vehicles and chemical products led the good news for Canadian manufacturers in August.
While the prices for manufactured goods rose, raw material costs slipped.

Statistics Canada says the Industrial Product Price Index rose 0.5 per cent for the month, based on increased sales in the two categories.

The price of new cars, trucks and buses increased 2.5 per cent, while vehicle parts were 0.9 per cent pricier by the end of the month.

Year-to-year, the news was even better for manufacturers. Stats Can says the IPPI was up 5.2 per cent between August 2010 and August 2011. Higher petroleum and coal product prices (29.8 per cent more), while primary metal products were 10.7 per cent higher.

The Raw Materials Price Index fell 3.2 per cent for the month based, in large part, on a 7 per cent drop in mineral fuels prices.

While prices took a hit for the month, the materials that keep industry running did cost more as a whole. From August last year to this August, the RMPI was up 13.3 per cent. It's the smallest year-over-year increase since February.

Despite the price decrease, mineral fuels were still a net gain for the year, rising 12.2 per cent. Other big winners in the last year include non-ferrous metals (up 16.7 per cent), vegetable products (up 31.5 per cent) and animals and animal products (up 11.7 per cent).

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