FX.co ★ Canada Producer Prices Rise More Than Expected

Canada’s producer prices rose 2.0% month over month in April 2026, easing from a 2.4% gain in March but surpassing market expectations of a 1.3% increase. Ongoing shipping disruptions in the Strait of Hormuz—a key global transit route for petroleum and other commodities—continued to drive prices higher for a second straight month.

Energy and petroleum products climbed 7.7% in April, following a 26.9% surge in March, largely reflecting an 8.1% increase in refined petroleum product prices. Within this category, prices rose notably for finished motor gasoline (+12.8%), diesel fuel (+3.9%), light fuel oils (+2.7%), and jet fuel (+2.5%).

Prices for chemicals and chemical products advanced 7.3%, marking the largest monthly increase on record (with data beginning in January 1981). The gain was led by plastic resins (+35.7%), dyes and pigments, and petrochemicals (+15.0%). Fertilizers, pesticides, and other chemical products also moved higher, up 5.7%.

Excluding energy and petroleum products, producer prices rose 1.1% in April. On an annual basis, producer price inflation reached 11.4%, the highest rate since July 2022.