Statistics Canada reported Thursday that the Industrial Product Price Index climbed 1.2% in May compared with the previous month, surpassing the 1.0% estimate. On a year-over-year basis the index rose 13.6% in May, representing the 20th straight month of annual increases.
The Raw Materials Price Index also posted gains, increasing 0.7% month over month and 33.4% versus May of last year. Statistics Canada highlighted ongoing disruptions to shipping through the Strait of Hormuz as continuing to influence global commodity markets in May, with effects on crude oil prices and wider supply chains that have been in evidence since March.
Monthly sector movements
Chemicals and chemical products recorded a large monthly advance, jumping 7.0% in May. This marked the fifth consecutive monthly rise for the sector and was driven largely by a sharp increase in plastic resins, which surged 33.1% during the month.
Energy and petroleum products rose 2.5% in May, the fifth straight monthly gain for that grouping. Finished motor gasoline prices were a notable contributor, increasing 7.2%.
Primary non-ferrous metal products were up 1.1% month over month, led by stronger prices for unwrought copper and copper alloys which rose 4.5% in May.
Raw materials detail
Within the raw materials index, crop products advanced 2.2% and metal ores, concentrates and scrap increased 0.5%. By contrast, crude energy products eased 0.5% in May after large increases in both April and March, with synthetic crude oil declining 4.3%.
Year-over-year drivers
Annual increases in the industrial index were concentrated in a handful of commodities. Unwrought silver and silver alloys surged 135.4% year over year, diesel fuel rose 61.0%, and finished motor gasoline was up 47.9% compared with May of last year.
On the raw materials side, conventional crude oil led the 12-month gains, up 58.7%, while gold, silver and platinum group metal ores and concentrates climbed 71.7% year over year.
The Statistics Canada release underscores persistent upward pressure on producer-level prices across a range of commodities and processed goods. Continued disruptions to shipping lanes and sizable month-to-month swings in specific energy products contributed to the volatility visible in the May readings.