Prices of manufactured products in Canada, according to the Industrial Price Index (IPPI), increased by 0.4% month-on-month in February and 4.9% year-on-year. Prices of raw materials purchased by manufacturers operating in Canada, according to the Raw Materials Price Index (RMPI), rose 0.3% month-on-month in February and 9.3% year-on-year.
Industrial Products Price Index
Prices of primary non-ferrous metal products rose monthly for the third consecutive time, rising 3.1% in February. The rise in the prices of gold, silver and platinum crude metals and their ingots (+5.1%) led the rise. Gold ore and bullion (+6.2%) and silver ore and bullion (+5.2%) rose as international trade uncertainty fueled demand for safe investments.
Energy and petroleum products prices rose 0.5% in February, following a 6.9% monthly increase in January. In February, prices of ready-made car gasoline (+0.2%) and diesel fuel (+0.2%) were impacted by lower conventional crude oil prices (-5.3%), with crude oil being the main input into refined petroleum production. Despite the lower cost of inputs, average monthly refining margins for regular gasoline (+15.6%) and diesel fuel (+8.4%) increased, according to data from Natural Resources Canada. Higher margins offset the lower cost of crude oil.
Prices of chemicals and chemical products rose 0.6% month-on-month in February, following a 3.2% monthly increase in January. This increase in February was mainly due to higher prices of ammonia and chemical fertilizers (+8.3%), which saw their largest monthly increase since August 2023 (+10.6%). The trend towards reducing the global supply of key fertilizers contributed to higher prices in February 2025. In addition, fertilizer demand increased in February as spring approached.
Prices of wood and other wood products fell 1.2% month-on-month in February, partially offsetting the monthly increase in the wood products price index.
Wood and metal products price index rises in February year-on-year
The wood products price index rose 4.9% y/y in February, after rising 5.6% y/y in January. Most product groups in the wood products price index recorded year-on-year gains in February..
The prices of gold, silver and platinum crude metals and their bars (+46.5%) were the main contributors to the movement of the wood products price index year-on-year by a large margin. Geopolitical and economic uncertainty supported gold and silver prices throughout 2024 and into early 2025. The prices of raw aluminum and its alloys (+28.9%), softwood (+13.7%), fresh and frozen beef and veal (+15.8%), and copper ore and its alloys (+18.9%) also contributed significantly to the increase in the commodity price index year-on-year.
Raw Material Price Index
The commodity price index rose 0.3% month-on-month in February 2025, after rising 3.5% between December and January. Excluding energy products, the commodity price index rose 3.4% in February.
Prices of crude energy products fell 4.7% in February. This decline followed a monthly increase of 7.2% in January, the largest decline for the commodity group since September 2024 (-8.7%). Prices of conventional crude oil fell by 5.3% from January to February 2025. The drop in crude oil prices was partly due to higher U.S. crude oil inventories from late January to February.
According to data from the US Energy Information Administration, by the end of the week of February 28, US crude oil inventories reached their highest level since July 2024. Moreover, the prospect of U.S. imposition of tariffs on foreign crude oil raised concerns about future oil demand, putting pressure on oil prices in February 2025.
Prices of metal ores, concentrates and scrap metals rose 4.7% in February, marking their sixth consecutive month-on-month rise.
Industrial Price Index: Annual Review 2024
In 2024, the industrial price index grew by 1.0%, following a decline recorded in 2023 by 1.9%. This year-on-year increase is mainly due to higher prices for primary non-ferrous metals and, to a lesser extent, higher prices for motor and recreational vehicles.
On the other hand, energy and petroleum products, as well as fruits, vegetables, fodder and other food products, were the main factors influencing the annual rise in the industrial price index.
Compared to 2019, i.e. before the COVID-19 pandemic, the index increased by 26.8% in 2024, influenced by significant increases in 2021 (+13.9%) and 2022 (+12.9%). Prices of primary non-ferrous metal products increased by 9.6% in 2024, after falling by 0.7% in 2023. The rise in the prices of raw gold and its bars (+24.8%) and crude silver and its bars (+22.7%) accounted for the largest share of the rise in this group.
Gold prices in the spot market hit an all-time high of $2,790 per ounce on October 31, 2024. As wars continue in the Middle East and Eastern Europe, geopolitical turmoil has boosted investment demand for gold and silver, which tends to rise in times of uncertainty. Moreover, central bank acquisitions of gold and frequent interest rate cuts had significant effects on precious metals prices in 2024.
In addition, the prices of aluminum ore and its alloys within the non-ferrous metals group increased by 13.0% in 2024, after declining by 10.8% in 2023. Aluminum prices had previously seen a significant increase in 2021 (+43.8%), as a result of lower production and a recovery in demand.
The US and UK ratified these sanctions in April, reducing aluminum supplies. Disruptions in the supply of aluminum production inputs around the world also contributed to higher aluminum prices in 2024 through increased production costs.
