- IPPI for November 6.1% vs 6.0% prior
- RMPI YoY 6.4% vs 5.8% prior
- IPPI MoM 0.9% vs 0.3% est and 1.5% previous
- RMPI MoM 0.3% vs 1.6% last
In simple terms, IPPI and RMPI are the two halves of Canada’s “Producer Price Index.”1 They track inflation at the business level rather than the grocery store level.2
Here is the breakdown of what each represents:
1. RMPI (Raw Materials Price Index)
What it is: This measures the price of inputs. It tracks what Canadian manufacturers have to pay to get raw materials into their factories.
What’s included: Raw minerals, metal ores, crude oil, logs, and unprocessed agricultural products (like wheat or cattle).
Key Detail: This is a “purchaser’s price.” It includes the cost of the item plus the extra stuff it takes to get it to the factory door, like transportation, custom duties, and taxes.
2. IPPI (Industrial Product Price Index)
What it is: This measures the price of outputs. It tracks the money manufacturers receive for the goods they’ve finished making as they leave the building.
What’s included: Finished or semi-finished goods like gasoline, lumber, processed food (like meat), and machinery.
Key Detail: This is a “factory gate price.” It represents only what the producer actually receives. It specifically excludes taxes, transportation, and retail markups.
The Main Differences at a Glance
| Feature | RMPI (Inputs) | IPPI (Outputs) |
| Stage | Start of production (Raw) | End of production (Finished) |
| Who Pays? | The Manufacturer | The Wholesaler/Distributor |
| Pricing | Includes taxes/freight | Excludes taxes/freight |
| Volatility | Usually higher (commodities swing wildly) | Usually lower (more stable) |
| Economic Role | A “leading indicator” (Rising RMPI usually means IPPI will rise soon) | A “pipeline indicator” (Rising IPPI usually leads to higher Consumer Prices/CPI) |
