Canada Producer Price Index for May: 0.0% vs. 0.5% estimate

• Previous month 1.5% was revised to 1.4%
• Producer prices rose monthly by 0.0% versus expectations of 0.5%.
• Year-on-year producer prices rose 1.8% versus 1.4% last month and were revised to 1.3%. This was the largest year-on-year increase since January 2023.
• Raw material prices on a monthly basis -1.0% compared to 5.5% last month and was revised to 5.3%. Excluding accumulated energy products, the Consumer Price Index rose 2.4%.
• Raw material prices increased year-on-year by 7.6% compared to 3.1% last month and were revised to 2.9%.

The producer price index was unchanged after four consecutive months of increases.

details:

• Energy and petroleum product prices -3.9% (first decline after three month-to-month increases. Declines were due to lower crude oil prices
• Wood and other wood products -4.9%. Softwood lumber prices fell -10.2%, the largest decline since June 2022
• Non-ferrous primary metal products +4.3%
• Meat, fish and dairy products +1.6%
• Raw energy products fell -6.4% in May for their first decline since December 2023.

The significant increase in RMPI year-on-year is partly explained by base effects. May 2023 showed a huge decline of -5.4% taking it out of the equation for the month.