Prices for industrial products rose 0.3 per cent in January while the raw materials price index rose 3.3 per cent, led by a rebound in petroleum prices, Statistics Canada reported Monday.

Petroleum and coal prices rose 4.4 per cent during January, the biggest contributor to the industrial products increase, followed by primary metal products, which rose 1.7 per cent.

Excluding petroleum and coal, Statistics Canada said the industrial index edged down 0.1 per cent after two straight monthly gains. Prices for motor vehicles and other transportation equipment declined 0.7 per cent, partly due to a 1.1 per cent appreciation in the Canadian dollar against the U.S. dollar.

Compared with a year earlier, the industrial product price index was down 0.3 per cent, pulled lower by year-over-year declines of 9.5 per cent for vehicles, 9.9 per cent for pulp and paper, 5.5 per cent for electrical and communication products, and 5.3 per cent for metal fabricated goods. These price declines were largely offset by increases of 28.4 per cent for petroleum and coal, and 13.4 per cent for primary metals.

Excluding the impact of the Canadian dollar's 17.6 per cent rise against the U.S. dollar between January 2009 and January 2010, the industrial products price index would have risen 3.6 per cent instead of declining 0.3 per cent.

Statistics Canada said the raw materials index jumped 29.3 per cent from January 2009 to January 2010, powered by sharply higher prices for mineral fuels and non-ferrous metals, while all other material groups declined.

Crude oil rose 5.6 per cent in January, after dropping 4.9 per cent in December.