OTTAWA, ONTARIO, CANADA — The Canadian Transportation Agency on April 25 unveiled a 2.8% increase in the Volume-Related Composite Price Index (VRCPI). The VRCPI, which is essentially an inflation factor, is used in determining the maximum revenue entitlement for the Canadian National Railway Co. and the Canadian Pacific Railway Co. for the movement of western grain.

According to the CTA, the VRCPI reflects a composite of the forecasted prices for railway labor, fuel, material and capital purchases.

The agency said the 2.8% increase reflects a 3.2% increase in forecasted price changes for railway inputs in the 2018-19 crop year, partly offset by a 0.4% decrease attributable to the effect of replacing last year’s forecasts of price changes for railway inputs for 2017 with actual data and incorporating revised forecasts for 2018.