FX.co ★ Canada Producer Prices Fall More than Expected

In April 2025, Canada's industrial producer prices experienced a decrease of 0.8% month-over-month, surpassing market expectations of a 0.5% reduction. This decline followed six consecutive months of rising prices. The primary factor contributing to the decrease was a 3.6% fall in energy and petroleum products, especially diesel fuel, which dropped by 4.1% due to a significant decline in crude oil prices, which fell by 9.4%. When excluding energy, the Industrial Product Price Index (IPPI) recorded a 0.5% decline, largely attributed to currency fluctuations. Non-ferrous metal prices saw a decrease of 2.8%, even though gold prices increased by 5.0%, amidst global demand uncertainties. Lumber prices declined by 4.4%, with softwood lumber experiencing an 11.1% decrease due to tariff-related concerns. Vehicle prices dropped by 0.9%, affected by the costs of engines and parts. Conversely, food prices increased, driven by canola oil rising by 8.4% and beef by 4.8%, due to robust export demand and a constrained domestic supply. On a year-over-year basis, producer prices went up by 2%. Meanwhile, the Raw Materials Price Index (RMPI), which tracks the cost of materials purchased by Canadian manufacturers, decreased by 3.0% month-over-month and fell by 3.6% compared to the previous year.