July 22, 2025
SUMMARY
The Industrial Product Price Index tracked lower year-over-year inflation in several categories, including machinery and equipment, lumber and other wood products, and prefabricated buildings. Cement, glass and non-metallic mineral products were elevated compared to most other categories but down from the first quarter of 2025.
OVERALL PICTURE AND HIGHEST INFLATION CATEGORIES
Inflation for most categories of interest was comfortably within the 1-3% range, with the biggest exception coming from primary non-ferrous metal products. Inflation in this category was down from the 24.3% y/y in January but remained high on the basis of platinum, gold, and silver prices. Packaging and materials was next highest, with increased inflation from earlier in the year; January-March average was 3.6%, where as the April-June average was 6.2%. Cement, glass, and non-metallic minerals came in at 4%, down from January’s 5.9% and 2024’s average of 7.4%. This was also the lowest inflation in this segment since May 2021 (3% y/y).
LOWEST INFLATION CATEGORIES
Mirroring the consumer price index changes, the energy component was significantly down at -7.6% y/y. This latest round of lower industrial energy product prices started in March (-4.8% y/y) and was further amplified in April (-10-6% y/y).
Lumber and other wood products inflation was elevated towards the end of 2024 (10.7% y/y in December), but has come down significantly since then, now sitting at 1.1%. Machinery and equipment has also seen a similar trend, albeit not as dramatic.
Lastly, prefabricated building and related materials also came down from 4.9% y/y in January to 1.6% y/y in June. The metal buildings subcategory saw a similar trend but at a slightly higher level (6.4% down to 2%).
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FOR MORE INFORMATION, CONTACT:
Ali Ahmad
Research Analyst
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210 ext. 222
aahmad@iciconstruction.com
