Canadian wood-product producer prices rise 3.2% in July

Canadian producer prices for lumber and other wood products rose 3.2% in July from June and were 7.6% higher than a year earlier, according to Statistics Canada’s latest Industrial Product Price Index.

The increase contrasts with relatively flat pricing for finished furniture and fixtures. That category rose just 0.2% month over month in July and was 0.3% below its July 2025 level.

The figures point to differing price trends across the wood manufacturing value chain. While the Industrial Product Price Index does not measure the specific input costs faced by cabinet, furniture or millwork manufacturers, the stronger increase in wood-product producer prices provides an indication of pricing conditions upstream from many value-added manufacturers.

The lumber and other wood products index reached 138.1 in July, compared with 133.8 in June and 128.3 in July 2025. The index uses January 2020 as its base of 100.

The July increase followed a 2.6% monthly rise in lumber and other wood products in June, when Statistics Canada reported that higher softwood lumber prices were the main factor behind the increase. Softwood lumber prices had risen 6.1% that month.

Machinery and equipment prices also continued to rise. The category increased 0.5% from June to July and was 4.7% higher than a year earlier. For wood manufacturers investing in production technology, the figure provides another broad indicator of the pricing environment for capital equipment, although it is not specific to woodworking machinery.

Across all Canadian manufactured products, the Industrial Product Price Index increased 0.6% in July and was 12.4% above its year-earlier level. Much of that increase came from energy and petroleum products, which rose 6.4% during the month and 42% year over year.

Excluding energy and petroleum products, however, Canadian industrial product prices declined 0.2% in July.

Statistics Canada’s Industrial Product Price Index measures changes in prices received by manufacturers in Canada for goods as they leave the factory. It covers products sold both domestically and for export and therefore differs from an index measuring manufacturers’ purchasing or operating costs.

For value-added wood manufacturers, July’s data show a notable gap between the 7.6% annual increase in lumber and other wood-product prices and the slight annual decline in furniture and fixture prices, highlighting a potentially tighter pricing environment between upstream wood products and finished manufactured goods.