Statistics Canada Reports Decline in Industrial Product and Raw Material Prices for May 2025

Prices for manufactured goods in Canada, measured by the Industrial Product Price Index (IPPI), fell 0.5% in May 2025 compared to April, according to Statistics Canada. The Raw Materials Price Index (RMPI), which tracks the prices manufacturers pay for raw materials, declined 0.4% in the same period.

Statistics Canada reported that the IPPI and RMPI reflect national-level price changes and are not seasonally adjusted. The IPPI recorded its second straight monthly decrease in May, while the RMPI posted its third monthly decline in a row.

Within the IPPI, prices for lumber and other wood products dropped 6.0% in May, the largest single-month decrease for the group since June 2022. Statistics Canada noted that softwood lumber prices fell 8.8%, affected by lower demand as buyers delayed purchases while waiting to see if prices would drop further. Prices for energy and petroleum products in the IPPI were down 1.9%, mainly due to a 4.8% decline in diesel fuel prices. The agency linked this change to reduced prices for conventional crude oil, the main input for these products. Conversely, finished motor gasoline prices rose 1.6%, with Statistics Canada attributing the increase to rising seasonal demand and refinery disruptions that tightened supply.

The agency also reported that prices for meat, fish, and dairy products rose 1.2% in May, extending a run of six consecutive monthly increases. The primary factor was higher prices for fresh and frozen beef and veal, which increased by 4.7%. According to Statistics Canada, this rise was caused by strong demand approaching the summer and ongoing cattle supply shortages. Primary non-ferrous metal products also saw a 0.9% increase, led by a 1.6% rise in unwrought gold, silver, and platinum group metals and their alloys. Prices for unwrought copper and copper alloys rebounded by 3.0%, a movement linked by the agency to easing trade tensions between the United States and China after a 90-day tariff pause.

Year over year, the IPPI increased 1.2%. Statistics Canada reported the largest contributor to this rise was unwrought gold and gold alloys, up 41.7%, followed by unwrought silver and silver alloys, fresh and frozen beef and veal, and unwrought aluminum and its alloys. On the opposite trend, prices for finished motor gasoline and diesel fuel fell 10.2% and 5.9% respectively compared to May 2024.

For the RMPI, the main factor behind the monthly decline was a 4.5% drop in crude energy product prices, led by a 4.3% decrease in conventional crude oil. Statistics Canada attributed this fall to ongoing concerns about excess supply in the global crude oil market. The Organization of the Petroleum Exporting Countries and its partners (OPEC+) announced an increase to its crude oil production target for June on May 3, with a similar increase for July announced on May 31.

Prices for metal ores, concentrates, and scrap rose 1.9% in May, primarily due to a 2.4% increase in gold, silver, and platinum group metal ores and concentrates. Prices for crop products increased 1.1%, with canola prices up 6.2%. Statistics Canada indicated that a tightening Canadian canola supply and strong export demand contributed to this price rise.

Annually, the RMPI was down 2.8% from May 2024. The annual decrease was mainly due to lower prices for conventional crude oil (down 22.4%) and synthetic crude oil (down 22.7%), and a 20.4% drop in nickel ore prices. Price increases for gold, silver, platinum group metals, cattle and calves, and miscellaneous crop products partially offset the annual decline in the RMPI.

Statistics Canada advised that IPPI and RMPI results may be revised in future releases and that the indexes are not adjusted for seasonality. The next release of these data will be on July 21.