BMO Notes Canada's Producer Prices Jump in September; Warns on Coming Goods Inflation

08:20 AM EDT, 10/21/2025 (MT Newswires) -- Bank of Montreal (BMO) said it doesn't normally highlight Canadian producer prices, since they are a bit volatile and tend to be reported after the consumer price index.

However, this time, the bank noted it will make an exception, as industrial product prices (IPPI) jumped 0.8% month over month in September on both the headline and the core -- the meatiest combo since January.

Non-ferrous metals and machinery led the way, pointed out BMO.

The hefty rise in core prices lifted them 5.6% above year-ago levels. And even the two-year rise, which smooths out some of the bumpiness, is up 3.7% annualized. The latter

measure acts as a good early indicator for core consumer prices, stated the bank.

BMO's view is that chilly growth and a soft housing market will take the steam out of underlying inflation, especially on the shelter and services side. But this bubbling up in core producer prices is a warning on goods inflation in the months ahead.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.