What is the Industrial Product Price Index?

by Craig Anthony

0 min read

In Canada, the Industrial Product Price Index is a measure of the change in prices of major commodities sold by manufacturers. Statistics Canada compiles the IPPI monthly.

The prices used for the IPPI are those of goods sold at the factory gate. Therefore, it excludes all taxes and transportation fees, and the index reflects the amount that the producer actually receives. The IPPI is expressed as a reference to a base period where the year 2010 is equal to 100. For example, for August 2016, the IPPI was 109.8.

Statistics Canada compiles the IPPI by sending sample questionnaires to manufacturers throughout Canada. The largest producers in a given industry are always included in the sampling; smaller producers are selected randomly.

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