Prices for goods made in Canada rose 2.0% from August to September 2026, Statistics Canada reported on October 22, 2026. The Industrial Product Price Index (IPPI) was 14.5% higher than a year earlier, and the Raw Materials Price Index (RMPI) rose 4.8% on the month and 27.0% year over year, according to the release.
- IPPI: +2.0% month over month and +14.5% year over year in September, the 24th straight month of year-over-year increases.
- IPPI excluding energy and petroleum products: +0.3% month over month.
- RMPI: +4.8% month over month and +27.0% year over year; excluding crude energy products it fell 0.4% on the month.
- Both indexes are not seasonally adjusted.
What drove the increase
Energy did most of the work. Prices for energy and petroleum products rose 12.1% in September after a 3.7% gain in August. Diesel fuel rose 18.4% on the month, finished motor gasoline 7.8% and light fuel oils 15.4%. Statistics Canada attributes the higher energy prices to the resumption of the conflict between the United States and Iran in August. Compared with September 2025, diesel prices were up 106.1% and gasoline 45.3%.
Outside energy, chemicals and chemical products rose 3.8% on the month, led by petrochemicals and plastic resins. On the raw materials side, crude energy products jumped 14.4%, while metal ores and animal products declined.
Why it matters for mortgage holders
The IPPI measures prices producers receive at the factory gate. Statistics Canada notes that it does not reflect what consumers pay. Our interpretation: higher producer costs can feed into consumer prices over time, and energy pressure was already visible in the September Consumer Price Index, which rose 3.1%.
The timing matters because the Bank of Canada's next scheduled rate announcement is Wednesday, October 28, according to its 2026 schedule. The Bank held its policy rate at 2.25% on September 2. Producer prices are one of many inputs the Bank weighs, and this release does not settle what it will do. Variable-rate mortgages and home equity lines of credit usually move with lenders' prime rates, which follow the policy rate. Our interpretation: fixed rates tend to track Government of Canada bond yields, which can move ahead of a decision.
What you can do now
- If you have a variable-rate mortgage, check whether your payment adjusts with prime or stays fixed while the interest portion changes.
- If your renewal is coming up, compare offers with the mortgage renewal calculator and test both options with the fixed vs variable calculator.
- Build a budget that still works if rates are higher at your next renewal than they are today.
The October IPPI and RMPI are scheduled for November 19.
Sources
- Statistics Canada, Industrial product and raw materials price indexes, September 2026, 2026-10-22. Accessed 2026-10-23.
- Bank of Canada, Bank of Canada publishes its 2026 schedule for policy interest rate announcements and other major publications, 2025-08. Accessed 2026-10-23.
- Bank of Canada, Bank of Canada maintains the policy rate at 2¼%, 2026-09-02. Accessed 2026-10-23.
This article is general information, not financial or investment advice. Figures are as published by Statistics Canada on October 22, 2026.
