FX.co ★ Canadian Producer Prices Fall Again in May

In May 2025, industrial producer prices in Canada experienced a 0.5% decrease month-over-month, marking the second consecutive drop following a 0.8% reduction in April. This decline contradicted forecasts, which anticipated stable prices for the period. Notably, lumber and other wood products saw a significant reduction of 6%, the most substantial decline since June 2022. This was largely attributed to an 8.8% reduction in softwood lumber prices, as buyers delayed their purchases in anticipation of further price falls. Additionally, energy and petroleum product prices decreased by 1.9%, with diesel fuel prices specifically dropping by 4.8%, reflecting reduced crude oil input costs. Conversely, motor gasoline prices increased by 1.6%, driven by seasonal demand and temporary refinery disruptions in North America. Positive changes in several other product categories partially mitigated the overall monthly decline. On an annual scale, the Industrial Product Price Index (IPPI) reported a 1.2% rise, marking its eighth consecutive year-over-year increase.