Prices of manufactured products in Canada, according to the Industrial Price Index (IPPI), increased by 1.6% m/m in January and increased by 5.8% year-on-year. Prices of raw materials purchased by manufacturers operating in Canada, according to the Raw Materials Price Index (RMPI), increased by 3.7% month-on-month and increased by 11.8% year-on-year.
Industrial Products Price Index
The industrial price index increased by 1.6% m/m in January. This was the fourth consecutive monthly increase and the biggest gain since April 2024 (+1.6%). The January 2025 rally was driven by higher energy and petroleum product prices. Excluding energy and petroleum products, the industrial price index increased by 0.9% m/m in January.
Prices of energy and petroleum products rose 7.0% month-on-month in January, following a 0.8% decline in December. This was the group’s largest monthly increase since August 2023 (+10.3%). The increase in January 2025 was mainly due to higher prices of refined petroleum energy products (+7.0%), especially diesel fuel (+9.4%) and automotive final gasoline (+5.4%). The rise in the prices of refined petroleum energy products was driven by an increase in the price of conventional crude oil (+8.1%), the main input to their production. In addition, cold weather in January across Canada and some parts of the United States has increased demand for heating fuel. This has put upward pressure on prices, especially for distilled fuels such as diesel.
Prices of fruit, vegetables, fodder and other food products rose 2.1% month-on-month in January, led by higher prices for cereals and oilseed products. (+5.2%). Signs of tightening oilseed supply helped push prices of oilseed products higher in January as difficult weather conditions in high-producing South American countries lowered production forecasts.
PPI and raw materials rise year-on-year
In January, the PPI rose 5.8% year-on-year, reaching its highest level in the previous twelve months. The movement was also affected year-on-year by the impact of the base period. In January 2024, the IPI was at its lowest level in 2024, as concerns about oil demand and rising supply levels led to relatively lower prices for energy and petroleum products. The annual increase of the PPI in January 2025 was the fourth consecutive year-on-year increase and the largest since December 2022 (+7.5%).
The main contributor to the annual increase in the PPI in January 2025 was the unworked metals of the gold, silver and platinum group and their alloys (+38.8%). Other significant contributors included softwood (+18.3%), unwrought aluminium and aluminium alloys (+24.8%), fresh and frozen beef and veal (+20.7%) and automotive finished gasoline (+7.7%). Precious metals prices rose due to strong safe-haven demand in the twelve months leading up to January, while limited supply contributed to higher softwood prices.
Most product groups in the International Raw Material Price Index saw year-on-year price increases in January. Prices of cereals and oilseed products, not elsewhere classified (-9.0%) were a notable exception. Despite lower production expectations in January, global oilseed production was strong over the twelve months ending in January.
Raw Material Price Index The wholesale price index rose 11.8% year-on-year in January, the third consecutive year-on-year increase and the largest growth since September 2022 (+12.6%).
In January, the raw material price index increased by 3.7% month-on-month, mainly due to higher prices of crude energy products. Excluding crude energy products, the raw material price index increased by 1.6% in January.
Chemical and metal prices rise in January 2025
Prices of chemicals and chemical products increased 2.3% month-on-month in January. This was the largest monthly growth for this commodity group since August 2023 (+3.3%). Petrochemical prices (+5.8%) were the main driver of the chemical price hike in January 2025. Since petrochemicals are mainly made from petroleum products, conventional crude oil prices (+8.1%) strongly influence their prices. Temporary closures of petrochemical plants in the U.S. Gulf Coast region linked to Winter Storm Enzo also pushed prices higher in January.
Prices of primary non-ferrous metal products rose 1.2% month-on-month in January. The high prices of unwrought gold and gold bullion (+3.5%) were mainly responsible for this increase. This was the seventh consecutive monthly increase for unworked gold and gold bullion. Gold prices hit a new record high in late January, driven by safe-haven demand as investors weighed the possibility of the United States imposing new tariffs on international trade.
The prices of iron ores and compounds (-21.4%) and natural gas (-15.8%) put significant downward pressure on the wholesale price index movement year-on-year in January. Market fundamentals in China, the world’s largest steel market, have impacted steel prices throughout the year.
Prices of crude energy products increased by 7.2% m/m in January. This was the Group’s largest monthly growth since March 2024 (+8.3%). Prices were higher for both conventional crude oil (+8.1%) and industrial crude oil (+6.5%) in January 2025. The rise in crude prices was partly due to new sanctions on Russian oil announced by the U.S. government. In addition, recent withdrawals of crude inventories in the United States have pushed crude prices higher. According to data from the U.S. Energy Information Administration, weekly crude inventories have fallen.
The wholesale price index rose 11.8% year-on-year in January, the third consecutive year-on-year increase and the largest growth since September 2022 (+12.6%).
