Canada December producer price index +4.9% y/y vs +5.8% expected

Canada's December producer price index (PPI) increased by 4.9% year-over-year, falling short of the 5.8% expected. The previous increase was 6.1%. Monthly figures show a decline of -0.6%, contrasting with an anticipated increase of +0.3%. This decline adds a layer to the ongoing narrative around Canadian inflation, especially following a hot consumer price index (CPI) which exhibited a deceleration in core figures prior. The monthly decrease was primarily driven by energy and petroleum product prices falling by 7.2%, with gasoline prices down 9.6%. Lumber and wood products experienced a significant drop of 3.0%, marking the largest monthly decline since May 2025. The overall commodity index saw pressure from most groups, although gold, silver, and copper provided notable gains. These metrics play a vital role in understanding cost pressures before they translate to consumer prices.