Monthly prices for manufactured goods at the factory gate rose in December for the first time since August, Statistics Canada said today.

Meanwhile, the government agency said raw materials prices declined for the second month in a row, as prices for crude oil continue to fall.

StatsCan said prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), rose 0.3% after three consecutive months of declines.

Higher prices for motor vehicles, lumber, and pulp and paper products were the main sources of the monthly increase.

On a year-to-year basis, prices were up 3.8% from December 2003.

The cost of raw materials fell 4.3% in December 2004, following a 5.2% drop in November.

However, raw materials cost 11.6% more than a year earlier.

Manufacturers’ prices for motor vehicles and other transport equipment increased 1.2%, mainly because of a weaker Canadian dollar. Lumber and other wood products were up 4.2% due to tight supply and increased demand. Prices for pulp and paper products rose 0.7% mainly due to a limited supply for pulp.

Prices for petroleum and coal products prices fell as gasoline and fuel oil prices dropped 6.6% from November.