Prices charged by Canadian manufacturers and the cost of raw materials bought by them rose sharply in September, with energy and petroleum products driving much of the monthly increase. The producer-price figures also mark the start of a staged transition to a new index sample, which is scheduled to be completed by December.
Factory-gate prices rise 2 per cent
The Industrial Product Price Index (IPPI), which tracks prices manufacturers receive as goods leave the factory gate, increased 2.0 per cent from August to September. It was 14.5 per cent higher than a year earlier, extending its run of annual increases to 24 consecutive months. The latest monthly rise followed a 1.2 per cent increase in August.
Energy and petroleum products were the main contributor to the monthly advance. Prices in that group climbed 12.1 per cent, after rising 3.7 per cent in August. Refined petroleum products led the move: diesel fuel prices increased 18.4 per cent, finished motor gasoline rose 7.8 per cent and light fuel oils were up 15.4 per cent.
The statistical agency said the renewed conflict between the United States and Iran in August continued to contribute to higher energy and petroleum prices in September. That is the agency’s stated attribution, not a claim that conflict alone explains every price movement. Outside energy and petroleum products, the IPPI edged up 0.3 per cent. Chemical and chemical product prices rose 3.8 per cent, with increases across petrochemicals, plastic resins and other chemical products.
Over the year, energy and petroleum products also made the largest contribution to the IPPI’s increase. Diesel fuel was up 106.1 per cent and finished motor gasoline 45.3 per cent compared with September 2025. Unwrought precious metals, copper and aluminium were among other product groups recording year-on-year gains.
Raw-material costs also move higher
The Raw Materials Price Index (RMPI), which measures prices paid by Canadian manufacturers for key raw materials, rose 4.8 per cent month on month and 27.0 per cent year on year. Crude energy products led the monthly increase, rising 14.4 per cent. Conventional crude oil was up 16.8 per cent and synthetic crude oil 9.0 per cent.
The movement was not uniform across inputs. Excluding crude energy products, the RMPI fell 0.4 per cent in September. Metal ores, concentrates and scrap were down 0.7 per cent, while crop products rose 2.1 per cent. Prices for animals and animal products declined 1.1 per cent, including an 8.8 per cent fall for hogs.
These measures describe different stages of business pricing, not the prices consumers pay at shops. The IPPI records what producers receive at the factory gate and excludes costs such as transport, wholesale and retail charges. The RMPI captures costs manufacturers pay for raw materials, including charges to bring them to the establishment gate. Neither index is the Consumer Price Index, and the changes should not be read as a direct measure of household inflation.
New sample introduced in stages
The September reference month is also the beginning of a sample transition for both indexes. The replacement sample is based on annual manufactured-product sales and raw-material purchase values reported by establishments selected for the 2022 Annual Survey of Manufacturing and Logging Industries. Rather than switching every index at once, the transition is being carried out in stages, with a subset of sample strata moving each month. All strata are due to have transitioned by the December 2026 reference month.
Index values calculated using the existing sample will not be revised with information from the new sample. The staged approach therefore changes the sample underpinning the published indexes over several months; it does not mean that the September price movements themselves are forecasts or that consumer prices have been reset.
The next release, covering October 2026, is scheduled for 19 November. Until then, the September results provide a snapshot of producer and raw-material prices during a month in which energy costs rose strongly, while movements among other product groups varied.
