Overview
Canada’s Industrial Product Price Index (IPPI) increased by 1.2% month‑over‑month in May 2026, beating the consensus estimate of 1.0% and marking the 20th consecutive month of year‑over‑year growth. The index rose 13.6% year‑over‑year, extending a two‑year streak of annual gains.
Component Performance
The Raw Materials Price Index rose 0.7% MoM and 33.4% YoY. Within the index, chemicals and chemical products posted a 7.0% MoM increase for the fifth straight month, driven primarily by plastic resins which surged 33.1%. Energy and petroleum products climbed 2.5% MoM, also for a fifth consecutive month, with finished motor gasoline up 7.2%. Primary non‑ferrous metal products rose 1.1% MoM, led by unwrought copper and copper alloys gaining 4.5%.
The raw materials sub‑index was led by crop products (+2.2% MoM) and metal ores, concentrates and scrap (+0.5% MoM). Crude energy products fell 0.5% MoM after large gains in April and March, with synthetic crude oil decreasing 4.3%.
Year‑over‑Year Drivers
Key contributors to the YoY rise in the industrial index were unwrought silver and silver alloys (+135.4%), diesel fuel (+61.0%) and finished motor gasoline (+47.9%). In the raw materials index, conventional crude oil rose 58.7% YoY and gold, silver and platinum‑group metal ores and concentrates increased 71.7% YoY.
External Factors
The report notes that ongoing shipping disruptions through the Strait of Hormuz have continued to affect global commodity markets throughout May, influencing crude oil costs and supply‑chain dynamics since March 2026.