Canada Producer Prices Rise for 5th Month

Producer prices in Canada increased 1.2% month-over-month in May 2026, a fifth consecutive monthly increase, but below a downwardly revised 1.6% in April and forecasts of 1.8%. Disruptions to shipping through the Strait of Hormuz continued to affect global commodity markets in May, reflecting impacts on crude oil costs and supply chains. This situation contributed to price increases across multiple commodity groups, including chemical and chemical products (7%), mostly plastic resins (33.1%); energy and petroleum products (2.5%), particularly motor gasoline (7.2%); and primary non-ferrous metal products (1.1%), mainly unwrought aluminum and aluminum alloys (3.5%). Excluding energy and petroleum products, producer prices increased 0.9%. Year-on-year, producer prices rose 13.6%, the most since June 2022, following an 11.1% rise in April. The largest contributions came from prices for unwrought silver and silver alloys (135.4%), diesel fuel (61%) and finished motor gasoline (47.9%).

Canada’s producer prices rose 2.0% month-over-month in April 2026, following a 2.4% increase in March and exceeding market expectations of 1.3%. Shipping disruptions in the Strait of Hormuz, a critical global route for petroleum and other commodities, pushed several commodity prices higher for the second consecutive month. Energy and petroleum products surged 7.7%, after a 26.9% jump in March, driven by higher refined petroleum product prices (+8.1%). Key components included finished motor gasoline (+12.8%), diesel fuel (+3.9%), light fuel oils (+2.7%), and jet fuel (+2.5%). Prices for chemicals and chemical products rose 7.3%, the largest monthly increase on record (data since January 1981), led by plastic resins (+35.7%), dyes and pigments, and petrochemicals (+15.0%). Fertilizers, pesticides, and other chemical products added 5.7%. Excluding energy and petroleum, producer prices increased 1.1%. Annually, producer price inflation reached 11.4% in April, the highest since July 2022.

Producer prices in Canada jumped 2.4% month-over-month in March 2026, following a 0.6% increase in February and above forecasts of 1.6%. The closure of the Strait of Hormuz was the main event impacting price movements across multiple commodities in March, including energy and petroleum products and chemicals and chemical products. The largest impact came from a record 27.4% surge in prices of energy and petroleum products, particularly refined petroleum energy products (+29.3%) and diesel fuel (+33.2%) and finished motor gasoline (+28.8%) also increased substantially. In addition, prices for chemicals and chemical products rose 4.1%, the largest gain since February 2021, driven primarily by higher prices for plastic resins (+15.4%) and petrochemicals (+8.9%). Excluding energy and petroleum products, producer prices were down 0.5%, with cost falling for primary non-ferrous metal products (-1.7%). Year-on-year, producer prices went up 7.8%.