Industrial product prices rose 1.3% in August, ahead of expectations for a flat reading…

… driven by higher energy prices on a resumption in the US-Iran conflict, which pushed petroleum product prices up 4% sequentially to new highs.

Similar dynamics played out in raw materials, with crude products up 7%…

… which could influence the Bank of Canada’s interest rate decision in October, especially after watching the Fed hike on Wednesday.

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However, if higher energy prices did spill over into other components of the CPI, members agreed that it could require a monetary policy response to prevent broad-based inflation from setting in.

Bank of Canada (September 2026 deliberations)

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