Canada's Industrial and Raw Materials Prices Surge in September 2026 Amid Renewed US-Iran Conflict
In September 2026, Canada's Industrial Product Price Index rose 2.0% month-over-month and 14.5% year-over-year, while the Raw Materials Price Index climbed 4.8% monthly and 27.0% annually. The increases were driven primarily by energy and petroleum products following the resumption of conflict between the United States and Iran.
Canada's industrial and raw materials prices accelerated sharply in September 2026, propelled by surging energy costs linked to the resumption of conflict between the United States and Iran in August.
The Industrial Product Price Index (IPPI) rose 2.0% month over month and gained 14.5% year over year, marking its 24th consecutive month of annual increases. Within the index, prices for energy and petroleum products climbed 12.1% from August to September, serving as a primary driver of the overall gain. Diesel fuel prices jumped 18.4% month over month, making the largest impact on the rise in refined petroleum energy products. On a year-over-year basis, diesel fuel prices increased 106.1%, finished motor gasoline rose 45.3%, and light fuel oils climbed 99.4%.
Beyond energy, prices for chemicals and chemical products rose 3.8% between August and September. This increase was supported by rising prices for dyes, pigments, petrochemicals, fertilizers, and plastic resins, with plastic resin prices alone increasing 11.0% during the month.
The Raw Materials Price Index (RMPI) followed a similar upward trajectory, rising 4.8% month over month and 27.0% year over year in September 2026. Crude energy products were the largest contributor to the RMPI's annual increase, with their prices climbing 14.4% month over month. Conventional crude oil prices specifically rose 16.8% during the same period.
Not all raw material categories experienced gains. Prices for metal ores, concentrates, and scrap decreased 0.7% month over month. Additionally, prices for animals and animal products fell 1.1% in September, driven by an 8.8% decrease in hog prices. Crop product prices moved higher, led by canola and other crop products.
The September 2026 reference month release also marked the beginning of a transition to a new sample for both the IPPI and RMPI.