Prices of Canadian manufactured goods and raw materials rose again in September due to higher costs for metals, fuel, and food, while lumber prices decreased.
The Industrial Product Price Index increased by 0.8% in September, marking its fourth consecutive monthly gain. Compared to last year, prices were up 5.5%. The Raw Materials Price Index rose 1.7% from August and 8.4% from a year earlier.
The largest contributor to September’s rise was the jump in non-ferrous metals such as gold and silver. Gold prices climbed 9.1%, and silver rose 12.3%, the biggest monthly increases since the spring of 2024.
Fuel costs also moved higher. Diesel prices increased by 2.5%, and gasoline rose by 1.4%, even though crude oil slipped slightly. The small drop in oil prices, down 0.4%, was not enough to offset tight inventories across North America. Canadian distillate fuel oil stocks remain near record lows, keeping wholesale prices elevated.
Food manufacturing costs continued their steady climb. Prices for meat, fish, and dairy products rose for the ninth month in a row, up 0.7% overall. Chicken rose 4.3%, and beef was up 1.4%, driven by strong consumer demand and limited domestic supply. Drought conditions in Western Canada have reduced cattle herds, and outbreaks abroad have disrupted poultry imports.
Lumber prices went in the opposite direction. Prices for wood products fell 4.4% in September after two months of gains. Softwood lumber plunged 10.7%, the largest monthly drop in more than three years.
Precious metals had the biggest impact on industrial prices, up more than 44%. Beef and veal prices were up 30%, and poultry was up 27%. Diesel fuel rose by about 10%, while softwood lumber was down more than 8%, partially offsetting the overall increase.
Prices for metal ores and scrap increased by more than 6% in August after gold and silver ore climbed roughly 9% and 10%. Crude energy prices, however, fell nearly 1% as markets anticipated an output boost from OPEC+ in November.
Over the past year, the price of raw materials has climbed 8.4%. Metal ores increased 46%, and cattle and calves were up more than 26% amid ongoing supply shortages. Crude oil fell around 9% from last year, moderating the overall rise in material costs.