In May, prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 0.5% month over month and increased 1.2% year over year. Meanwhile, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell 0.4% month over month and declined 2.8% year over year.

Industrial Product Price Index
The IPPI fell 0.5% month over month in May, posting a second consecutive monthly decrease.

Prices for lumber and other wood products fell 6.0% month over month in May, declining for a second consecutive month. This was the largest monthly downturn for this commodity group since June 2022 and was mainly driven by declining prices for softwood lumber (-8.8%). Lower demand played a part in the price decline as cautious buyers waited to see if prices would continue falling before making purchases.

Prices for energy and petroleum products declined 1.9% month over month in May. The decline was mainly due to lower prices for refined petroleum energy products, particularly diesel fuel (-4.8%). Lower prices for refined petroleum products were driven by a decrease in the prices of conventional crude oil, their primary production input. By contrast, prices of finished motor gasoline rose 1.6%, due to increasing seasonal demand and unexpected North American refinery setbacks that resulted in temporarily tighter supply.

Prices in several product groups increased on a monthly basis in May, partly offsetting the decline in the IPPI.

Prices for meat, fish and dairy products rose 1.2% month over month in May, their sixth consecutive monthly increase. The increase in this group was mainly driven by higher prices for fresh and frozen beef and veal (+4.7%). Strong demand approaching the seasonal peak in early summer and ongoing short cattle supply both played a part in pushing beef prices higher.

The prices of primary non-ferrous metal products increased 0.9% on a monthly basis in May, mainly driven by higher prices for unwrought gold, silver, and platinum group metals, and their alloys (+1.6%). Unwrought copper and copper alloys rebounded in May (+3.0%) after falling 8.1% in the previous month. Prices for gold continued to rise, as safe-haven metals remained in high demand amid global market volatility. Copper prices rose partly due to the easing of trade tensions between the United States and China in May, following a 90-day tariff pause announced by the United States, which led to speculation of an increase in global demand.
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Source: statcan.gc.ca