Canadian factory prices rose again in November, driven largely by higher fuel and metals costs.
The Industrial Product Price Index increased 0.9% from October and was up 6.1% from a year earlier. Energy and petroleum products dominated the monthly gain, but the rise was not limited to fuel. Even after stripping out energy, factory prices still advanced 0.4%, signalling that price pressure has broadened across manufacturing.
Diesel fuel stood out, jumping 7.9% in one month. Gasoline prices rose more modestly, highlighting how uneven energy inflation has become.
Metals pricing remains another major force. Primary non-ferrous metals rose 0.8% in November, extending a steady climb that has now lasted seven months. Precious metals were the main driver, with silver posting sharper gains than gold. Traders anticipating an interest rate cut by the Federal Reserve and concerns about global supply tightness supported prices. On a yearly basis, prices for unwrought gold, silver and platinum group metals were up nearly 60%, the largest increase for that category since 2011, a scale of growth that is difficult for manufacturers to absorb or pass through smoothly.
Food-related factory prices also moved higher. Grain and oilseed products recorded strong gains after China returned to the market as a significant buyer of US soybeans. The shift reinforced how closely Canadian food prices remain tied to global demand patterns rather than domestic supply conditions.
Raw material costs rose more slowly. The Raw Materials Price Index edged up 0.3% in November and was 6.4% higher than a year earlier. Rising prices for metal ores and concentrates continued to push the index upward, reflecting sustained strength in mining inputs.
Hog prices dropped 7.5% from October, the steepest monthly decline in more than a year. Lower production costs encouraged higher supply, while seasonal demand eased after the summer, pulling prices down and tempering overall raw material inflation.
Crude energy prices moved in the opposite direction from refined fuels. Conventional and synthetic crude oil prices declined in November and were down more than 15% from a year earlier, as global supply remained ample through 2025. The contrast between falling crude prices and rising refined fuel costs raises questions about how long current pricing dynamics can hold without feeding further inflation into transportation, food and consumer goods.