Producer prices in Canada rose 2.0% month-on-month in September 2026, accelerating from a downwardly revised 1.2% gain in August and contrasting with market expectations of a slowdown to 0.9%. This marked the sharpest monthly rise since March, driven primarily by the prolonged US-Iran conflict, which continued to push inflation of energy and petroleum products higher to 12.1% following a 3.7% gain in August. The increase reflected higher prices for refined products (13.7%), particularly diesel (18.4%), followed by finished motor gasoline (7.8%) and light fuel oils (15.4%). Excluding energy and petroleum products, producer prices edged up 0.3%. Chemical and chemical product prices rebounded sharply by 3.8% after falling 0.3% in August, driven by higher prices for dyes and pigments and petrochemicals (9.7%). Plastic resins (11.0%) and fertilizers, pesticides and other chemical products (4.1%) also contributed significantly to the increase.