Input prices jumped in August, driven primarily by rising energy prices amid the ongoing conflict between the U.S. and Iran, Statistics Canada reports.
The price of raw materials purchased by Canadian manufacturers were up 3.1% in the month, and up 22.8% from August 2025, the national statistical agency said.
“The crude energy products commodity group was the main driver of the increase,” Statistics Canada said.
Excluding crude energy products, raw materials prices were up 1.1% in August, led by higher prices for precious metals.
Overall, crude prices were up 7.1% in the month, with prices for synthetic crude jumping 21.6%, and conventional crude up 2.8%.
“The unravelling of the ceasefire agreement between Iran and the United States was associated with the increase in August,” Statistics Canada noted.
Rising energy prices also put upward pressure on raw materials on a year-over-year basis. Synthetic crude prices were up 55.3% and conventional crude rose 29.8% over the period.
Excluding crude energy, raw materials prices were up 17.2% year-over-year in August, led by a 47.1% jump in precious metals prices.
Alongside the increased raw materials costs, prices for products manufactured in Canada also rose by 1.3% in August, and were up 13.5% year-over-year, Statistics Canada said.
Again, the energy sector was the primary culprit, with overall energy and petroleum prices up 4% in the month — led by a 9.6% increase in diesel prices and an 8.5% jump for light fuel oils. Excluding energy products, industrial prices were up 0.8% in August.