Prices for goods manufactured in Canada fell in June for the first time in six months as lower oil and precious metal prices pushed the Industrial Product Price Index down 1.4 percent from May, while raw material costs posted their steepest monthly decline in nearly four years.
The Industrial Product Price Index declined after five consecutive monthly increases. Excluding energy and petroleum products, the index edged down 0.1 percent.
Energy and petroleum products led the monthly decline, falling 9.1 percent. Refined petroleum products dropped 10.3 percent as lower crude oil prices reduced input costs for refiners. Finished gasoline fell 11.0 percent, while diesel fuel declined 9.7 percent. Crude energy products dropped 13.7 percent for a second straight month.
Prices for primary non-ferrous metal products fell 4.7 percent, the largest monthly decline for the group since July 2022. The decrease was driven by lower prices for unwrought gold, silver and platinum group metals, which fell 9.8 percent. Silver prices dropped 12.9 percent, platinum group metals declined 10.8 percent and gold slipped 5.5 percent. It was the fifth consecutive monthly decline for the precious metals category.
Lumber provided one of the few areas of strength. Prices for lumber and other wood products rose 2.6 percent, extending gains to a sixth consecutive month. Softwood lumber increased 6.1 percent, its largest monthly rise since November 2024.
Despite the June decline, prices charged by manufacturers remained well above year-earlier levels. The Industrial Product Price Index increased 12.4 percent from June 2025, marking its 21st consecutive year-over-year gain.
The largest contributors to the annual increase were unwrought gold, silver and platinum group metals, up 52.1 percent, diesel fuel, up 45.1 percent, and finished motor gasoline, up 38.0 percent. Plastic resins rose 70.8 percent from a year earlier, while aluminum and copper products each increased by more than 41 percent.
Raw material prices fell even more sharply during the month. The Raw Materials Price Index dropped 6.9 percent in June, its largest monthly decline since July 2022 and its first decrease since August 2025. Excluding crude energy products, the index fell 2.7 percent.
Crude energy products accounted for most of the decline. Conventional crude oil fell 15.7 percent and synthetic crude oil dropped 9.8 percent during the month.
Metal ores, concentrates and scrap also moved lower, falling 5.1 percent. Gold, silver and platinum group metal ores and concentrates declined 8.4 percent, their largest monthly drop since July 2017. Nickel ores and concentrates fell 4.3 percent.
Compared with June 2025, the Raw Materials Price Index was up 20.7 percent, slowing from a 33.4 percent annual increase in May. Excluding crude energy products, the index rose 18.6 percent from a year earlier.
Gold, silver and platinum group metal ores and concentrates posted the largest annual increase, climbing 50.6 percent. Conventional crude oil was up 23.6 percent from a year earlier, while synthetic crude oil increased 34.4 percent.
Some agricultural commodities continued to weigh on the index. Prices for grains excluding wheat fell 16.3 percent from June 2025, hog prices declined 6.3 percent and other miscellaneous crop products dropped 9.7 percent.