FX.co ★ Canada Producer Prices Drop Most in Over 2 Years

Canada’s industrial producer price index (IPPI) fell by 1.4% month-over-month in June 2026, the steepest decline since December 2023, partially reversing the surge in producer prices that began in January. The temporary restoration of energy supplies from the Middle East, following a memorandum of understanding between Iran and the United States, drove a sharp drop in fuel prices during the month. As a result, the energy and petroleum component of the index declined by 9.1%.

Producer prices also decreased for non-ferrous metal products (-4.7%) and for meat, fish, and dairy products (-0.2%). Despite the monthly pullback, the Canadian IPPI was still up 13.6% year-on-year, the strongest annual increase since 2022, as fuel prices remained elevated on an annual basis. Energy and petroleum prices were 36.8% higher than a year earlier, while prices for chemical products rose by 18%.