Canadian producers faced higher prices for finished goods in August.
The Industrial Product Price Index rose 0.5 per cent from July and was 4.0 per cent higher than a year earlier. Excluding energy and petroleum products, the monthly increase was 0.7 percent.
The Raw Materials Price Index, which tracks what manufacturers pay for inputs, moved in the opposite direction. It slipped 0.6 per cent on the month, although it remained 3.2 per cent higher than in August 2024.
The chemicals, motor vehicles, metals, and food led the August gain. Meat, fish and dairy products rose 1.9 per cent, the ninth straight monthly increase, with beef and chicken climbing sharply on the back of seasonal demand and tight domestic supply. Drought in the Prairie provinces has cut cattle herds, while poultry markets remain affected by bird flu in major exporting countries.
Prices for precious metals also strengthened. Gold gained 1.6 per cent and silver rose 1.9 per cent, lifting the broader non-ferrous metals category. Market expectations that the U.S. Federal Reserve will cut interest rates in September added to safe-haven demand for metals.
The increases were tempered by a 1.3 per cent decline in energy and petroleum products. Conventional crude oil prices dropped nearly 4 per cent, pulling diesel lower, though gasoline rose almost 2 per cent amid peak summer driving.
The drop in raw material costs was largely tied to energy. Crude oil fell 3.7 per cent, with synthetic crude down more than 5 per cent. OPEC’s announcement of a production hike for September raised fears of oversupply and pushed prices down.
Prices for metal ores increased 2 per cent, continuing a year-long streak of monthly gains. Gold and silver ores were up more than 2 per cent. Crop prices fell overall, led by a 6.4 per cent decline in canola after China imposed new tariffs on Canadian seed exports in mid-August.
On an annual basis, manufactured goods have now risen for 11 consecutive months. Precious metals were the biggest driver, up more than 36 percent compared with August 2024. Beef and poultry also posted strong double-digit increases. Gasoline was one of the few products that declined year over year, down 5.4 per cent.
Raw material prices were 3.2 per cent higher than a year earlier. Cattle and calves were up nearly 20 per cent, while energy products continued to weigh on the index. Crude oil prices were down more than 16 per cent compared with last year.