Industrial product and raw materials price indexes, May 2025
Released: 2025-06-20
May 2025
-0.5% 
(monthly change)
May 2025
-0.3%
(monthly change)
May 2025
-0.4%
(monthly change)
May 2025
1.6% 
(monthly change)
In May, prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), declined 0.5% month over month and increased 1.2% year over year. Meanwhile, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), fell 0.4% month over month and declined 2.8% year over year.
Chart 1
Prices for industrial products decline in May
Industrial Product Price Index
The IPPI fell 0.5% month over month in May, posting a second consecutive monthly decrease.
Prices for lumber and other wood products fell 6.0% month over month in May, declining for a second consecutive month. This was the largest monthly downturn for this commodity group since June 2022 and was mainly driven by declining prices for softwood lumber (-8.8%). Lower demand played a part in the price decline as cautious buyers waited to see if prices would continue falling before making purchases.
Prices for energy and petroleum products declined 1.9% month over month in May. The decline was mainly due to lower prices for refined petroleum energy products, particularly diesel fuel (-4.8%). Lower prices for refined petroleum products were driven by a decrease in the prices of conventional crude oil, their primary production input. By contrast, prices of finished motor gasoline rose 1.6%, due to increasing seasonal demand and unexpected North American refinery setbacks that resulted in temporarily tighter supply.
Prices in several product groups increased on a monthly basis in May, partly offsetting the decline in the IPPI.
Prices for meat, fish and dairy products rose 1.2% month over month in May, their sixth consecutive monthly increase. The increase in this group was mainly driven by higher prices for fresh and frozen beef and veal (+4.7%). Strong demand approaching the seasonal peak in early summer and ongoing short cattle supply both played a part in pushing beef prices higher.
The prices of primary non-ferrous metal products increased 0.9% on a monthly basis in May, mainly driven by higher prices for unwrought gold, silver, and platinum group metals, and their alloys (+1.6%). Unwrought copper and copper alloys rebounded in May (+3.0%) after falling 8.1% in the previous month. Prices for gold continued to rise, as safe-haven metals remained in high demand amid global market volatility. Copper prices rose partly due to the easing of trade tensions between the United States and China in May, following a 90-day tariff pause announced by the United States, which led to speculation of an increase in global demand.
Year over year
The IPPI increased 1.2% year over year in May, the eighth consecutive year-over-year increase.
Unwrought gold and gold alloys (+41.7%) contributed the most to the IPPI's year-over-year increase in May. Uncertainty surrounding global trade and geopolitical tensions drove up prices for gold over the 12 months ending in May. Other key contributing groups that increased year over year included unwrought silver and silver alloys (+12.8%), fresh and frozen beef and veal (+19.5%), and unwrought aluminum and aluminum alloys (+15.3%).
Key contributing groups displaying downward year-over-year price movements in May included finished motor gasoline (-10.2%), diesel fuel (-5.9%), and unwrought nickel and nickel alloys (-20.4%).
Raw Materials Price Index
The RMPI declined 0.4% month over month in May, the third consecutive monthly decrease. Excluding crude energy products, the RMPI rose 1.6% in May.
Crude energy products (-4.5%) led the RMPI's decline in May, posting their fourth consecutive monthly decline. The decline was mainly driven by conventional crude oil (-4.3%). Concerns that the global crude oil market may be oversupplied led to downward price pressure in May. On May 3, OPEC+ (the Organization of the Petroleum Exporting Countries and its partners) announced an increase to its June production target. Speculation that the group would also increase its July target persisted throughout the month of May. On May 31, OPEC+ announced an equivalent increase to its July production target.
Prices for metal ores, concentrates and scrap increased 1.9% month over month in May. Higher prices for gold, silver, and platinum group metal ores and concentrates (+2.4%) mainly drove the price increase in this group.
Prices for crop products rose 1.1% in May, driven higher by rising canola prices (+6.2%). Canadian canola supplies have tightened in recent months due to strong export demand in the 2024/2025 crop year, which reduced available stocks. Prices continued to rise in May due to the supply scarcity.
Year over year
The RMPI fell 2.8% on a yearly basis in May, posting the second year-over-year decrease in a row. Excluding crude energy products, the RMPI rose 9.6% year over year in May.
The RMPI's year-over-year decline in May was led by lower prices for conventional crude oil (-22.4%) and synthetic crude oil (-22.7%). Prices for nickel ores and concentrates fell 20.4% compared with May 2024.
Higher prices for gold, silver, and platinum group metal ores and concentrates (+28.4%) partly moderated the RMPI's year-over-year decrease in May. Other key categories that experienced year-over-year increases in May included cattle and calves (+17.5%) and other miscellaneous crop products (+38.3%). Cattle prices remained high mainly due to continued short domestic supply.
Chart 2
Prices for raw materials decline in May
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Note to readers
The Industrial Product Price Index (IPPI) and the Raw Materials Price Index (RMPI) are available at the Canada level. Selected commodity groups within the IPPI are also available by region.
With each release, data for the previous six months may have been revised. The indexes are not seasonally adjusted.
The IPPI reflects the prices that producers in Canada receive as goods leave the factory gate. The IPPI does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes, such as sales taxes and tariffs, and all costs that occur between the time a good leaves the plant and the time the final user takes possession of the good. This includes transportation, wholesale and retail costs. Although the IPPI does not measure the direct effect of tariffs on prices, tariffs may indirectly influence prices measured in the IPPI. For example, inputs used in the production process that are imported and on which Canada imposes a tariff may raise the prices charged by Canadian producers. Tariffs on Canadian imports or exports may also indirectly influence prices in the IPPI through their impact on supply and demand dynamics.
Canadian producers export many goods. Canadian producers often indicate goods' prices in foreign currencies, especially in US dollars, which are then converted into Canadian dollars. This is particularly the case for motor vehicles, pulp and paper products, and wood products. Therefore, fluctuations in the value of the Canadian dollar against its US counterpart affect the IPPI. However, the conversion to Canadian dollars reflects only how respondents provide their prices. This is not a measure that takes into account the full effect of exchange rates.
The conversion of prices received in US dollars is based on the average monthly exchange rate established by the Bank of Canada and available in Table 33-10-0163-01 (series v111666275). Monthly and annual variations in the exchange rate, as described in the release, are calculated according to the indirect quotation of the exchange rate (for example, CAN$1 = US$X).
The RMPI reflects the prices paid by Canadian manufacturers for key raw materials. The RMPI includes all charges purchasers incur to bring a commodity to the establishment gate, including transportation charges, net taxes paid, and customs duties and tariffs paid on imported raw materials. Many of the prices measured by the RMPI are set on the world market. However, as few prices are denominated in foreign currencies, their conversion into Canadian dollars has only a minor effect on the calculation of the RMPI.
Products
Statistics Canada launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. This webpage provides Canadians with a single point of access to a variety of statistics and measures related to producer prices.
The video "Producer price indexes" is available on the Statistics Canada Training Institute webpage. It introduces Statistics Canada's producer price indexes: what they are, how they are made and what they are used for.
Next release
The industrial product and raw materials price indexes for June will be released on July 21.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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