Industrial product and raw materials price indexes, February 2025
Released: 2025-03-20
February 2025
0.4% 
(monthly change)
February 2025
0.4%
(monthly change)
February 2025
0.3%
(monthly change)
February 2025
3.4%
(monthly change)
Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), grew 0.4% month over month in February and increased 4.9% year over year. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), increased 0.3% month over month in February and rose 9.3% year over year.
Chart 1
Prices for industrial products increase in February
Industrial Product Price Index
The IPPI grew 0.4% month over month in February. This was the index's fifth consecutive month-over-month increase.
The prices of primary non-ferrous metal products experienced a third straight month-over-month increase, rising 3.1% in February. Higher prices for unwrought gold, silver, and platinum group metals, and their alloys (+5.1%) led the upward movement. Prices grew for both unwrought gold and gold alloys (+6.2%) and unwrought silver and silver alloys (+5.2%) as international trade uncertainty fuelled safe-haven investment demand.
The prices of energy and petroleum products increased 0.5% in February, following a 6.9% monthly increase in January. In February, prices for finished motor gasoline (+0.2%) and diesel fuel (+0.2%) were influenced by lower prices for conventional crude oil (-5.3%), as crude oil is the main input in refined petroleum production. Despite the reduced input cost, monthly average refining margins increased for regular gasoline (+15.6%) and diesel fuel (+8.4%), according to data from Natural Resources Canada. The higher margins counteracted the lower cost of crude.
Prices for chemicals and chemical products rose 0.6% on a monthly basis in February, following a 3.2% monthly increase in January. The increase in February was mainly due to higher prices for ammonia and chemical fertilizers (+8.3%), which experienced their largest month-over-month increase since August 2023 (+10.6%). A trend toward tighter global supply of key fertilizers contributed to the higher prices in February 2025. In addition, fertilizer demand was stronger in February as spring approached.
Prices for lumber and other wood products fell 1.2% month over month in February, partly counterbalancing the IPPI's monthly increase. This followed six consecutive month-over-month increases for this commodity group. Lower prices for softwood lumber (-3.4%) contributed the most to the February decrease, as cold weather patterns slowed down buying activity.
Year over year
The IPPI increased 4.9% year over year in February after a 5.6% year-over-year rise in January. Most product groups in the IPPI posted year-over-year gains in February.
The prices of unwrought gold, silver, and platinum group metals, and their alloys (+46.5%) were the main contributor to the IPPI's year-over-year movement by a large margin. Geopolitical and economic uncertainty lent support to gold and silver prices throughout 2024 and into early 2025. Unwrought aluminum and aluminum alloys (+28.9%), softwood lumber (+13.7%), fresh and frozen beef and veal (+15.8%), and unwrought copper and copper alloys (+18.9%) also substantially contributed to the IPPI's year-over-year increase.
Raw Materials Price Index
The RMPI increased 0.3% month over month in February 2025 after rising 3.5% from December to January. Excluding energy products, the RMPI increased 3.4% in February.
Prices for crude energy products decreased 4.7% in February. This decline followed a 7.2% month-over-month increase in January, and it was the largest decline for the commodity group since September 2024 (-8.7%). Conventional crude oil prices fell 5.3% from January to February 2025. Lower crude prices were partly due to a climb in US crude oil inventories from late January through February. According to data from the U.S. 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 potential for tariffs being imposed on foreign crude oil by the United States caused concerns about future oil demand, exerting downward pressure on oil prices in February 2025.
The prices of metal ores, concentrates and scrap rose 4.7% in February, recording their sixth consecutive month-over-month increase. Prices for gold, silver, and platinum group metal ores and concentrates (+6.1%) increased for the sixth month in a row in February, driving metal prices higher.
Year over year
The RMPI rose 9.3% year over year in February. This was the index's fourth straight year-over-year increase. Excluding crude energy products, the RMPI rose 16.2% on a yearly basis in February.
Prices for gold, silver, and platinum group metal ores and concentrates (+49.2%) had the largest impact on the RMPI's year-over-year rise in February. The prices of cattle and calves (+27.3%), other miscellaneous crop products (+54.4%), and hogs (+15.2%) also notably contributed on a year-over-year basis. Green coffee beans, a subcategory of other miscellaneous crop products, and cattle faced constrained supply over the 12-month period ending in February.
Year-over-year declines in the prices of logs and bolts (-10.0%) and conventional crude oil (-1.1%) helped moderate the RMPI on a year-over-year basis in February.
Chart 2
Prices for raw materials rise in February
Industrial Product Price Index: Annual Review, 2024
In 2024, the IPPI grew by 1.0%, following the 1.9% decline recorded in 2023. The annual increase was primarily driven by higher prices for primary non-ferrous metals and, to a lesser extent, motorized and recreational vehicles. On the other hand, energy and petroleum products as well as fruit, vegetables, feed and other food products were the main moderators of the IPPI's annual increase. Relative to 2019, prior to the COVID-19 pandemic, the index was up 26.8% in 2024, influenced by large increases in 2021 (+13.9%) and 2022 (+12.9%).
The prices of primary non-ferrous metal products rose 9.6% in 2024 after a 0.7% decline in 2023. Higher prices for unwrought gold and gold alloys (+24.8%) and unwrought silver and silver alloys (+22.7%) had the largest contributions in this group. Gold spot market prices reached a new all-time high of $2,790 per troy ounce on October 31, 2024. With wars ongoing in the Middle East and Eastern Europe, geopolitical turmoil boosted investment demand for gold and silver, which tends to increase in times of uncertainty. Moreover, central banks' gold acquisitions and frequent interest rate cuts had substantial impacts on precious metal prices in 2024.
Additionally, within the non-ferrous metals group, the prices of unwrought aluminum and aluminum alloys rose 13.0% in 2024, following a 10.8% decline in 2023. Previously, aluminum prices experienced a substantial increase in 2021 (+43.8%), due to reduced production and rebounding demand. In early 2024, aluminum prices were pushed up amid speculation that certain countries could impose sanctions on Russian aluminum. The United States and the United Kingdom ratified such sanctions in April, tightening aluminum supply. Disruptions to the supply of aluminum production inputs around the globe further contributed to higher aluminum prices in 2024 by raising production costs. Conversely, prices for unwrought nickel and nickel alloys declined 20.6% on an annual basis, mainly because of strong output levels in Indonesia, the world's top nickel producing country.
Prices for motorized and recreational vehicles, the most highly weighted commodity group in the IPPI, increased 1.8% from 2023 to 2024. The increase was mainly due to higher prices for passenger cars and light trucks (+1.0%) and it marked the third consecutive annual increase for motorized and recreational vehicles. Due to the considerable proportion of products that are denominated in US dollars in this commodity group, changes in the exchange rate between the Canadian dollar and the US dollar tend to affect its price movements. The Canadian dollar depreciated 1.5% against the US dollar on an annual basis, with most of the devaluation occurring in the fourth quarter of 2024.
Prices for lumber and other wood products increased 2.2% in 2024 after posting consecutive declines in 2023 (-24.0%) and in 2022 (-3.0%) as rising interest rates affected lumber demand. Nevertheless, lumber prices increased substantially in 2020 (+19.6%) and 2021 (+40.4%) due to strong demand for new housing and home renovations. Compared with 2019, lumber prices were 26.6% higher in 2024. The main contributor to the 2024 annual increase was softwood lumber (+6.2%), which saw a significant rise in the second half of the year due to Canadian sawmill curtailments and closures driven by high operating costs. This situation reduced supply, pushing prices higher.
Prices for energy and petroleum products declined by 6.6% in 2024 and were the largest moderator of the IPPI's annual increase. This marks the second straight annual decrease in the commodity group following large price increases in 2021 (+42.6%) and 2022 (+53.3%). The 2024 decrease was mostly driven by lower prices for refined petroleum energy products (-7.0%), including diesel fuel (-9.7%) and finished motor gasoline (-5.5%). Diesel inventories in the United States rebounded in 2024, after a global shortage in 2022 and much of 2023. According to U.S. Energy Information Administration data, average monthly diesel inventories in the United States were 5.0% larger in 2024 compared with 2023. Gasoline inventories rose in 2024 as well, contributing to lower prices for gasoline. Diesel and gasoline prices are also heavily influenced by crude oil, the primary input in their production. Conventional crude oil prices fell by 1.3% in 2024, as measured by the RMPI. Increased global production and slower demand growth pushed crude oil prices down, but geopolitical tensions in the Middle East had a notable moderating effect on the decrease.
Prices for fruit, vegetables, feed and other food products declined 2.3% in 2024 after four consecutive annual increases from 2020 through 2023. The index level was therefore 33.3% higher in 2024 than it was in 2019. Within the fruit and vegetables group, prices for grain and oilseed products, n.e.c. (not elsewhere classified) declined 20.3% in 2024, influenced by ample oilseed supply in 2023/2024.
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Note to readers
The Industrial Product Price Index (IPPI) and the Raw Materials Price Index (RMPI) are available at the Canada level. Selected commodity groups within the IPPI are also available by region.
With each release, data for the previous six months may have been revised. The indexes are not seasonally adjusted.
The IPPI reflects the prices that producers in Canada receive as goods leave the factory gate. The IPPI does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes, such as sales taxes, customs duties and tariffs, and all costs that occur between the time a good leaves the plant and the time the final user takes possession of the good. This includes transportation, wholesale and retail costs.
Canadian producers export many goods. Canadian producers often indicate goods' prices in foreign currencies, especially in US dollars, which are then converted into Canadian dollars. This is particularly the case for motor vehicles, pulp and paper products, and wood products. Therefore, fluctuations in the value of the Canadian dollar against its US counterpart affect the IPPI. However, the conversion to Canadian dollars reflects only how respondents provide their prices. This is not a measure that takes into account the full effect of exchange rates.
The conversion of prices received in US dollars is based on the average monthly exchange rate established by the Bank of Canada and available in Table 33-10-0163-01 (series v111666275). Monthly and annual variations in the exchange rate, as described in the release, are calculated according to the indirect quotation of the exchange rate (for example, CAN$1 = US$X).
The RMPI reflects the prices paid by Canadian manufacturers for key raw materials. The RMPI includes all charges purchasers incur to bring a commodity to the establishment gate, including transportation charges, net taxes paid, customs duties and tariffs. Many of the prices measured by the RMPI are set on the world market. However, as few prices are denominated in foreign currencies, their conversion into Canadian dollars has only a minor effect on the calculation of the RMPI.
Products
Statistics Canada launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. This webpage provides Canadians with a single point of access to a variety of statistics and measures related to producer prices.
The video "Producer price indexes" is available on the Statistics Canada Training Institute webpage. It introduces Statistics Canada's producer price indexes: what they are, how they are made and what they are used for.
Next release
The industrial product and raw materials price indexes for March will be released on April 22.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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