Producer prices in Canada rose 2.0% month-on-month in September 2026, accelerating from a downwardly revised 1.2% increase in August and defying market expectations for a slowdown to 0.9%. This was the sharpest monthly gain since March, largely driven by the ongoing US–Iran conflict, which continued to push up energy and petroleum product inflation to 12.1%, following a 3.7% rise in August.
The increase was mainly attributable to higher prices for refined petroleum products, which climbed 13.7%. Within this category, diesel prices surged 18.4%, while finished motor gasoline rose 7.8% and light fuel oils advanced 15.4%. Excluding energy and petroleum products, producer prices were up a more modest 0.3%.
Prices for chemicals and chemical products rebounded strongly, rising 3.8% after a 0.3% decline in August. This turnaround was led by higher prices for dyes and pigments and for petrochemicals, which together increased 9.7%. Plastic resins (up 11.0%) and fertilizers, pesticides and other chemical products (up 4.1%) also made notable contributions to the overall gain.
