The Industrial Product Price Index fell 0.6% in December, reversing a strong gain in November.
Once energy and petroleum products are stripped out, the picture looks different. The IPPI excluding energy rose 0.2% in December, indicating that underlying price pressures in non-energy manufacturing remain in place. On a year-over-year basis, industrial prices were still up 4.9%, extending a run of annual increases that has now lasted more than a year.
Energy and petroleum products were the dominant drag, with prices plunging 7.2% in a single month. Refined petroleum products fell even more sharply, driven by steep declines in gasoline and diesel. Global oil production has exceeded consumption for more than a year, and expectations of continued oversupply have kept downward pressure on prices.
Outside energy, price movements were uneven and in some cases notably strong. Lumber and wood products posted their largest monthly decline since spring, as seasonal demand faded heading into winter.
Primary non-ferrous metals recorded an eighth consecutive monthly increase, rising 7.1% in December. Interest rate cuts in the United States boosted safe-haven demand, while tight global supplies added upward pressure across key metal markets.
Upstream costs continued to climb. The Raw Materials Price Index rose 0.5% in December and was up 6.4% from a year earlier, highlighting persistent cost pressure for manufacturers. Excluding crude energy products, raw material prices jumped 2.4% on the month and more than 21% year over year.
Metal ores, concentrates and scrap drove much of the RMPI increase, posting an eighth straight monthly gain. Prices for silver and gold inputs surged, while copper prices continued to rise amid strong demand from the technology sector.
Energy inputs moved in the opposite direction. Prices for conventional and synthetic crude oil fell again, reflecting weak global demand and continued oversupply. China’s economic slowdown and its longer-term shift toward electrification have further limited growth in oil consumption. Agricultural inputs also declined sharply, with crop prices recording their steepest monthly drop in more than a year.
Taken together, December’s data point to widening gaps between sectors rather than broad-based cooling. Energy-linked disinflation is pulling down headline measures, while metals and other non-energy inputs continue to rise, complicating cost management for Canadian manufacturers heading into 2026.