FX.co ★ Canada Producer Prices Increase for 6th Month

In November, Canada's industrial producer prices experienced a 0.9% month-over-month rise, marking the sixth consecutive monthly increase, following an upwardly revised gain of 1.7% in October. This increase was largely driven by the energy and petroleum sector, which saw a 4.3% increase due to a significant rise in refined petroleum prices—diesel prices surged by 7.9%, and finished motor gasoline went up by 1.5%, attributed to tighter distillate margins and concerns over supply. Prices for primary non-ferrous metal products also saw growth, increasing by 0.8%, with notable rises of 3.2% for unwrought silver and silver alloys, and 1.2% for unwrought gold and gold alloys, as traders anticipated U.S. interest rate cuts coupled with supply constraints. Additionally, food-related prices rose, with fruit, vegetables, feed, and other food products increasing by 1.3% month-over-month, led by a notable 7.3% growth in grain and oilseed products. Year-over-year, the Industrial Product Price Index increased by 6.1% in November, recording its 14th consecutive annual rise, with significant yearly gains noted in unwrought gold, silver, platinum group metals, and their respective alloys.