FX.co ★ Canada Producer Prices Unexpectedly Rise

Canada’s producer prices rose 1.3% month-on-month in August 2026, accelerating from a downwardly revised 0.3% increase in July and defying market expectations of no change. Escalating tensions in the US–Iran conflict drove energy and petroleum prices higher, up 4% on the month, though this was slower than July’s 6.2% gain. The increase was largely due to higher prices for refined petroleum products (4.6%), especially diesel (9.6%) and, to a lesser extent, light fuel oils (8.5%). Excluding energy and petroleum products, producer prices advanced 0.8%.

Prices for primary non-ferrous metal products also turned higher, rising 4.4% after two consecutive monthly declines, supported by an 8% increase in unwrought gold, silver, platinum-group metals and their alloys. In addition, prices for chemicals and related products climbed 2.8%, rebounding from a 6.9% drop in July, driven mainly by higher prices for plastic resins (10.7%) and for fertilizers, pesticides and other chemical products (3.0%).