Monthly prices for manufactured goods at the factory gate were down in December, as prices for petroleum products declined for a third month, Statistics Canada said today. Raw materials prices were down for a fourth consecutive month in December, as prices for crude oil continued to fall.

Prices charged by manufacturers, as measured by StatsCan’s Industrial Product Price Index (IPPI), were down 0.3% from November to December. Lower prices for petroleum products, motor vehicles and chemical products were the major contributors to this monthly decrease.

The 12-month change in the IPPI was 2.5%, down from November’s year-over-year increase of 2.9% and largely due to higher prices for petroleum products as well as chemical products compared to one year earlier.

On a month-over-month basis, manufacturers’ prices were down 0.3%, mainly due to lower prices for petroleum products, motor vehicles and chemical products.

Petroleum and coal products prices decreased 2.1% compared to November. If petroleum and coal product prices had been excluded, the IPPI would have edged down 0.1% rather than decreasing 0.3%.

Motor vehicles and other transport equipment declined 1.2% as the Canadian dollar remained strong. Prices for chemical products fell 1.3% from the previous month as lower prices were observed for synthetic resins.

The government agency said its Raw Materials Price Index (RMPI) was down 1.2% from November to December, following a 1.5% decrease the previous month. There were price decreases in mineral fuels as well as ferrous materials.

Compared to December 2004, raw materials cost factories 16.8% more, up from the 12-month change of 12.7% in November.

On a monthly basis, raw materials prices fell 1.2% in December, following a decrease of 1.5% in November. Mineral fuels were down 4.1% compared to November. Crude oil prices decreased 4.5% as inventories remained high.

Ferrous materials decreased 0.8% from the previous month as prices were down for iron ore and iron and steel scrap.

However, prices for non-ferrous metals rose 5.5% mainly due to higher prices for zinc concentrates, radio-active concentrates, lead concentrates, copper concentrates and gold. Prices for animal and animal products rose 1.4% compared to the previous month, as increases were registered for cattle for slaughter and unprocessed whole milk. Prices for wood products increased 0.8% with higher prices for softwood logs and bolts being reported.

In December, the IPPI (1997=100) stood at 111.0 down from November’s level of 111.3. The RMPI (1997=100) stood at 146.9, down from a revised level of 148.7 in November.