Canada’s industrial producer prices rose by 0.6% month-over-month in November 2024, building on a 1.2% increase in October. This growth surpassed market expectations, which had predicted a more modest rise of 0.3%. The increase was driven by significant price hikes in key sectors, including lumber and other wood products, energy and petroleum products, and motorized and recreational vehicles.

Price Increases in Key Sectors

The largest price increase in November came from lumber and wood products, which rose by 5.7%, marking the steepest increase since March 2022. Energy and petroleum products also saw a 1.1% increase, reflecting ongoing inflationary pressures in the energy sector. Motorized and recreational vehicles rose by 0.7%, driven by continued demand in the automotive and leisure vehicle markets. These sectors contributed significantly to the overall rise in industrial producer prices.

Read More: Canada Manufacturing Sales

Declines in Certain Products

However, not all sectors in Canada’s Industrial Producer saw price increases. Prices fell for primary non-ferrous metal products, which declined by 1%, and for meat, fish, and dairy products, which saw a 1.1% drop. These decreases helped offset some of the overall price rises, contributing to a more mixed inflationary environment.

Yearly Price Growth

On a yearly basis, industrial producer prices rose 2.2% in November 2024, following a 1.1% increase in October. This suggests that while inflationary pressures remain significant, the rate of growth in producer prices has accelerated, reflecting both higher costs in certain industries and persistent inflationary trends. As the year continues, these price trends will be key to understanding the broader inflationary landscape in Canada.

Source: https://tradingeconomics.com/canada/producer-price-inflation-mom