Motor vehicles and basic metals ensure positive IPP (0.12%) in May
June 28, 2017 09h00 AM | Last Updated: July 18, 2017 04h06 PM
Between April and May 2017, the IBGE's Producer Price Index (IPP), which measures the price changes of the general industry (mining and quarrying plus manufacturing) without taxes or freight, changed 0.12%, after shrinking 0.11% in the previous month. In the year, prices recorded a slight drop (-0.07%), but in 12 months they accumulated a 2.26% increase. Over April, prices of 16 out of 24 industrial activities surveyed had a rise.
Alexandre Brandão, IBGE manager of Analysis and Methodology, highlights that, since March, the IPP has been presenting quite little ups and downs. "This month, the sectors of basic metals and motor vehicles were crucial for the positive change", he explained.
Basic metals recorded change of 0.29%, the seventh increase in a row. Alexandre says that the sector is recovering from the drops seen from 2015 to the mid of 2016.
However, the sector of motor vehicles advanced 1.35%, the tenth positive change in the activity. Besides, this is the highest change observed since January 2016, when the result was 2.13%. "Motor vehicles have a high weight in the IPP and made durable goods increase even more this month", Brandão highlighted.
Concerning the positive effects, Alexandre also points out the sector of petroleum refining and ethanol products. "All petroleum derivatives increased following the rise in crude petroleum oil. Just ethyl alcohol did not increase, for this period corresponds to sugarcane harvest", he added.
The negative highlights, on the other hand, come from mining and quarrying industries and other chemicals. Decreasing -10.95%, the prices of mining and quarrying were taken down by iron ores, the only product that fell. "It was such a strong drop that the sector as a whole presented price decline. "That has been happening in the foreign market, and Brazil is following the trend", declares Alexandre.
Alexandre also highlighted that the sector of other chemicals, decreasing 1.42%, is following the foreign market as well. "The only product that did not decrease was manure, because it is imported and, with the national currency depreciation, it ended up becoming more expensive."
Text: Irene Gomes
Photo: Steve Jurvetson / Flickr / https://creativecommons.org/licenses/by/2.0/
