- Prior +1.2% revised to 1.4%
- PPI MoM -1.4% vs -0.4% expected
- PPI YoY 12.4% vs 13.6% last month
- Raw Material Price index MoM -6.9% vs 0.5% last month
- Raw Material Price index YoY 20.7% vs 33.4% lst month
Details of the PPI data:
- Main driver: A tentative U.S.-Iran agreement eased concerns over shipping through the Strait of Hormuz, sending energy prices sharply lower.
- Excluding energy and petroleum: IPPI edged down 0.1%, led by weaker primary non-ferrous metal prices.
Key price changes
- Energy & petroleum products:-9.1%
- Refined petroleum products: -10.3%
- Finished motor gasoline: -11.0%
- Diesel fuel: -9.7%
- Crude energy products: -13.7% (second straight monthly decline)
- Primary non-ferrous metal products:-4.7%
- Largest monthly decline since July 2022
-
Precious metals:
- Silver: -12.9%
- Platinum group metals: -10.8%
- Gold: -5.5%
- Precious metals posted a fifth consecutive monthly decline after the strong rally through early 2026.
Offsetting strength
- Lumber & wood products:+2.6% (sixth straight monthly increase)
- Softwood lumber: +6.1%, the largest monthly gain since November 2024.
For the Raw Material price data:
- Main drivers: Sharp declines in crude energy products and metal ores, concentrates, and scrap.
- Excluding crude energy products: RMPI declined 2.7%.
Key price changes
- Crude energy products:-13.7%
- Conventional crude oil: -15.7%
- Synthetic crude oil: -9.8%
- Prices fell after the announcement of a tentative U.S.-Iran agreement, easing concerns over oil supply disruptions.
- Metal ores, concentrates & scrap:-5.1%
- Largest monthly decline since June 2023
-
Gold, silver & platinum group metal ores: -8.4%
- Largest monthly drop since July 2017
- Nickel ores & concentrates: -4.3%
The IPPI reflects the prices that producers in Canada receive as goods leave the factory gate. The IPPI does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes, such as sales taxes and tariffs, and all costs that occur between the time a good leaves the plant and the time the final user takes possession of the good. This includes transportation, wholesale and retail costs. Although the IPPI does not measure the direct effect of tariffs on prices, tariffs may indirectly influence prices measured in the IPPI. For example, inputs used in the production process that are imported and on which Canada imposes a tariff may raise the prices charged by Canadian producers. Tariffs on Canadian imports or exports may also indirectly influence prices in the IPPI through their impact on supply and demand dynamics.
The RMPI reflects the prices paid by Canadian manufacturers for key raw materials. The RMPI includes all charges purchasers incur to bring a commodity to the establishment gate, including transportation charges, net taxes paid and customs duties and tariffs paid on imported raw materials.
This article was written by Greg Michalowski at investinglive.com.