Canadian manufactured goods prices rose again last month, driven higher by a jump in fuel costs with a resumption of the conflict in the Middle East, though a drop in crude oil prices early in July helped drive down manufacturers’ raw material costs. Statistics Canada’s industrial product price index increased 0.6% in July from the month before. Compared with a year earlier, prices were 18.1% higher.

Cost pressures have remained elevated since the start of the Iran conflict. Product prices have risen in six of the last seven months, after slipping 0.6% in June, as energy prices fell following a tentative peace deal between the U.S. and Iran improved prospects for shipping through the Strait of Hormuz, a key corridor for crude oil in the region.

Prices for energy and petroleum increased 6.4% for the month, led by rises in diesel fuel and gasoline. Excluding the energy component, Canadian producer prices slipped 0.2% between June and July. Crude oil shipments through the Strait of Hormuz recovered briefly in July, pushing crude oil prices down. However, Statistics Canada noted International Energy Agency data showed that refined product markets remained tight, pushing petroleum refinery margins to four-year highs in early July.

Prices of primary non-ferrous metal products declined 5.2% in July, led by a drop in gold, silver and platinum group metals, and their alloys. Unwrought aluminum and aluminum alloys recorded the largest month-over-month fall since April 2025.