The increase was more than triple the forecast of analysts who had expected to see the raw materials price index (RMPI) rise 2% month-over-month. It was the strongest rise seen in the RMPI since September, 1990. With the March increase built in, raw material prices are now 20.4% higher than they were in March, 2007.

If mineral fuels were excluded, the index would have risen 1.1% in March.

Meanwhile the industrial product price index (IPI), which reflects the prices Canadian producers receive as goods leave their plant gates, rose 1.7% in March, significantly higher than the +1.0% consensus forecast of analysts.

The IPPI increase was largely driven by the energy sector, with an 8% jump in prices for petroleum and coal products. Excluding energy, the index would have risen 0.8%. Primary metal product prices (+5.9%) also contributed to the increase.

With the release of the March results, StatsCan also adjusted the figures for the previous month. RMPI increased 0.6% in February (previously reported as +0.5%) and IPPI rose 0.2% (previously reported as +0.1%).

By Geoff Matthews, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it