FX.co ★ Canada Producer Prices Rise for 5th Month

Producer prices in Canada rose 1.2% month over month in May 2026, marking a fifth consecutive monthly increase but easing from the 2% gain in April and falling short of market expectations of 1.8%.

Ongoing disruptions to shipping through the Strait of Hormuz continued to weigh on global commodity markets in May, pushing up crude oil costs and straining supply chains. These pressures drove price increases across several major commodity groups, including:

• Chemicals and chemical products, up 7.0%, led by a surge of 33.1% in plastic resins;
• Energy and petroleum products, up 2.5%, driven in particular by a 7.2% rise in motor gasoline prices;
• Primary non-ferrous metal products, up 1.1%, mainly reflecting a 3.5% increase in unwrought aluminum and aluminum alloys.

Excluding energy and petroleum products, producer prices advanced 0.9% on the month.

On an annual basis, producer prices were up 13.6% in May, the strongest increase since June 2022, after an 11.4% rise in April. The largest upward contributions came from unwrought silver and silver alloys (up 135.4%), diesel fuel (up 61.0%), and finished motor gasoline (up 47.9%).