Canada Producer Prices Drop Most in Over 2 Years

The industrial producer price index in Canada fell by 1.4% from the previous month in June of 2026, the sharpest decline since December of 2023, to erase part of the surge in producer prices since January. The brief restoration of energy supply from the Middle East after the memorandum of understanding between Iran and the US drove fuel prices to slide in the month. The energy and petroleum sector of the CPI slid by 9.1%. Meanwhile, prices also fell for non-ferrous metal products (-4.7%) and meat, fish, and dairy products (-0.2%). The Canadian IPPI surged by 13.6% annually, the highest since 2022, as fuel prices remained elevated despite the monthly pullback. Energy and petroleum prices were 36.8% higher, while those for chemical products were 18% up.

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.