Canada Producer Prices Unexpectedly Decline

Producer prices in Canada fell 0.6% month over month in December 2025, the steepest decline in seven months, following an upwardly revised 1.1% increase in November and compared with market expectations for a 0.3% rise. The drop was driven primarily by lower prices for energy and petroleum products (-7.2%), notably refined petroleum energy products (-8.2%), including motor gasoline (-9.6%) and diesel fuel (-7.5%). Prices for lumber and other wood products also declined (-3%). Offsetting some of the downward pressure, prices for primary non-ferrous metal products rose 7.1%, led by sharp increases in unwrought silver and silver alloys (+25.4%), unwrought platinum group metals and their alloys (+15%), and unwrought gold and gold alloys (+3.4%). On a year-on-year basis, producer prices increased 4.9% in December, easing from a 5.9% rise in the previous month.

Canada’s industrial producer prices rose 0.9% month-over-month in November, marking the sixth consecutive monthly increase and following an upwardly revised 1.7% gain in October. Energy and petroleum products led the monthly rise (+4.3%), driven by higher refined petroleum prices as diesel jumped 7.9% and finished motor gasoline climbed 1.5% on tighter distillate margins and supply concerns. Primary non-ferrous metal products also rose (0.8%), with unwrought silver and silver alloys up 3.2% and unwrought gold and gold alloys up 1.2% as traders priced in anticipated US rate cuts and supply tightness. Food-related prices increased as well, with fruit, vegetables, feed and other food products up 1.3% month-on-month (led by a 7.3% rise in grain and oilseed products). On a yearly basis, the IPPI was up 6.1% in November, its 14th straight annual increase, with unwrought gold, silver and platinum group metals and their alloys posting outsized year-on-year gains.

Canada’s industrial producer prices rose 1.5% month-over-month in October, marking the fifth consecutive monthly increase, following an upwardly revised 1.0% gain in September. Non-ferrous metal products (+9.8%) led the increase, with unwrought silver and silver alloys up 17.2% and unwrought gold and gold alloys up 12.0%, posting exceptionally large monthly gains as safe-haven demand and supply tightness pushed precious-metal prices higher. Energy and petroleum products fell 1.0%, with finished motor gasoline down 4.6%, moderating the overall increase. Meat, fish and dairy-related items also contributed, with fresh and frozen beef and veal and poultry registering notable gains. Offsetting some of the upside, lumber and other sawmill products rose 4.3%, led by softwood lumber (+6.9%) after operational curtailments and pre-tariff buying boosted prices. On a yearly basis, producer prices increased 6.0% in October, marking the 13th straight gain, following a 3.7% increase in September.