Energy rebound boosts raw materials prices

A rebound in energy prices drove raw materials costs higher in June, according to new data from Statistics Canada.

The national statistical agency reported that the Raw Materials Price Index (RMPI) rose 2.7% last month, on a month-over-month basis.

Following four months of declines, crude energy prices were up 6.8% in the month, as prices for conventional crude oil were up 8.2% and synthetic crude prices rose by 6.4%.

“Crude oil prices spiked in early and mid June, mainly on account of geopolitical tensions in the Middle East, following Israel’s strike on Iran, which caused supply disruption concerns,” Statistics Canada noted in a release.

Toward the end of the month, crude prices fell as geopolitical risks eased and in light of a planned oil production increase for August by OPEC+, it said.

Excluding crude energy products, the RMPI rose 0.8%, Statistics Canada said.

Outside of crude energy, metals were up 1.4% in June, led by higher prices of silver.

Last year, silver prices began rising due to growing industrial demand and a persistent lack of global supply. In June, silver prices were driven by “increased safe-haven investment due to concerns that U.S. tariffs could negatively impact global trade,” Statistics Canada said.

On a year-over-year basis, raw materials prices were up just 1.1% in June, as crude energy prices eased. Prices for conventional crude were down 15.8% over the period.

Excluding crude energy products, the RMPI was up 11.8% year over year, Statistics Canada reported. Precious metals prices, which were up 34.2% over the period, led the way, followed by increased agricultural prices.

Alongside the increase in raw materials prices, industrial prices, as measured by the Industrial Product Price Index (IPPI), rose by 0.4% month over month and 1.7% year over year in June.

Industrial product prices were driven higher by precious metals, food and energy products, but were partly offset by declines in ferrous metals, electronic and telecom products, and motorized and recreational vehicles.

Precious metals also drove the year-over-year rise in the IPPI, led by “strong safe-haven investment demand” for gold over the past 12 months, Statistics Canada said.