• IPPI for November 6.1% vs 6.0% prior
• RMPI YoY 6.4% vs 5.8% prior
• IPPI MoM 0.9% vs 0.3% est and 1.5% previous
• RMPI MoM 0.3% vs 1.6% last

Details of the IPPI:

• Annual Change: Gained 6.1% year-over-year, marking the 14th straight annual increase.

• Broad-Based Rise: 16 out of 21 commodity groups saw prices rise compared to last year.

Summary of the Primary Drivers of Increase

Key Takeaways for 2026

• The “Core” Trend: Even when stripping out volatile energy and petroleum, the IPPI still rose 0.4%, showing that inflation is “sticky” across the manufacturing sector.

• Geopolitical Impact: Global conflict and trade shifts (Russia/Ukraine and U.S./China trade) are directly dictating the costs for Canadian producers.

• Supply Chain Squeeze: While energy is the current headline driver, the massive year-over-year increase in metals and meat suggests that high input costs will continue to filter through to consumer prices (CPI) as we head into the new year.

Details of the RMPI:

• The “Core” Trend: Stripping out volatile crude energy, the RMPI surged 19.0% year-over-year, indicating massive price pressure in non-energy sectors.

Summary of the Primary Drivers of RMPI Change

• Metal Ores, Concentrates, and Scrap (+1.5% Monthly):

  • This group was the main driver of the monthly increase.

  • Precious Metals (Gold, Silver, Platinum): Rose 4.0% in November, marking an incredible 15th straight monthly gain.

  • Yearly Impact: On an annual basis, these metals are up 57.5%, reflecting a global rush into safe-haven assets.

• Animals and Animal Products (-2.0% Monthly):

  • This was the largest monthly drop for the group in over a year.

  • Hogs (-7.5%): Prices fell due to lower production costs (increasing supply) and the end of the summer grilling season.

  • Yearly Contrast: Despite the monthly dip, Cattle and Calves remain 20.9% more expensive than they were a year ago.

• Crude Energy Products (-0.5% Monthly / -15.0%+ Yearly):

  • Energy acted as a “brake” on inflation. Conventional Crude Oil fell 0.9% in November and is down 15.2% year-over-year.

  • The Cause: Massive global oil oversupply throughout 2025 has offset the “geopolitical risk premium” caused by the Russia-Ukraine conflict.

Key Takeaways for 2026

• A “Two-Speed” Input Market: Manufacturers relying on metals and livestock are facing extreme cost increases (+19.0% core RMPI), while those relying on oil and gas are seeing significant relief.

• Persistent Metal Surge: With 15 months of consecutive gains in precious metals, the “base cost” for electronics, jewelry, and industrial components has shifted structurally higher.

• Supply vs. Demand: The drop in hog prices shows that when production costs fall and supply increases, prices can actually retreat, offering a rare bit of deflationary news in an otherwise hot report.

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What is it?

In simple terms, IPPI and RMPI are the two halves of Canada’s “Producer Price Index.”¹ They track inflation at the business level rather than the grocery store level.²

Here is the breakdown of what each represents:

1. RMPI (Raw Materials Price Index)

What it is: This measures the price of inputs. It tracks what Canadian manufacturers have to pay to get raw materials into their factories.

What’s included: Raw minerals, metal ores, crude oil, logs, and unprocessed agricultural products (like wheat or cattle).

Key Detail: This is a “purchaser’s price.” It includes the cost of the item plus the extra stuff it takes to get it to the factory door, like transportation, custom duties, and taxes.

2. IPPI (Industrial Product Price Index)

What it is: This measures the price of outputs. It tracks the money manufacturers receive for the goods they’ve finished making as they leave the building.

What’s included: Finished or semi-finished goods like gasoline, lumber, processed food (like meat), and machinery.

Key Detail: This is a “factory gate price.” It represents only what the producer actually receives. It specifically excludes taxes, transportation, and retail markups.

The Main Differences at a Glance

Feature	RMPI (Inputs)	IPPI (Outputs)
Stage	Start of production (Raw)	End of production (Finished)
Who Pays?	The Manufacturer	The Wholesaler/Distributor
Pricing	Includes taxes/freight	Excludes taxes/freight
Volatility	Usually higher (commodities swing wildly)	Usually lower (more stable)
Economic Role	A “leading indicator” (Rising RMPI usually means IPPI will rise soon)	A “pipeline indicator” (Rising IPPI usually leads to higher Consumer Prices/CPI)