IPP accelerates, pressed by petroleum derivatives and biofuels
October 26, 2017 09h00 AM | Last Updated: October 26, 2017 11h51 AM
The Producer Price Index - IPP, which measures the price changes in industry free from taxes and freight, accelerated from 0.29% in August to 1.50% in September. This is the highest figure in the survey since October 2015 (1.77%). Released today by the IBGE, the IPP registered a cumulative index of 0.48% in the year and of 2.68% in the last 12 months.
The major contributions to the rise of the index were due to the increases of 4.47% in the prices of petroleum derivatives and alcohol products (biofuels), of 14.05% in the mining and quarrying industry, of 2.35% in other chemicals and of 1.87% in basic metals. The rise took place in most sectors, affecting 19 out of the 24 activities surveyed. On the other hand, food products, which have the largest share in industry, dropped 0.19%, the eighth negative change in the year. The only positive rate in this sector this year took place in May (0.40%).
The increase in petroleum derivatives and fuels along two consecutive months (11.24% in August and 4.47% in September), compared with the previous month, reversed the dropping trend shown along 2017. As a result, this activity recorded the highest figure in the cumulative index in the year (7.72%). In the mining and quarrying industries, the rise changed from 6.21% in August to 14.05% in September.
According to Alexandre Brandão, manager of Analysis and Methodology at the IBGE, the results of these sectors mainly reflected the behavior of the rise in the petroleum prices in the international market: "The world supply of petroleum dropped due to the Organization of the Petroleum Exporting Countries - OPEC´s policies to control it. Hurricane Irma, which hit the south of the United States in September, also contributed to reduce the supply and increase the price", explained the manager.
Text: Adriana Saraiva
Artwork: Helena Pontes
Photograph: Petrobras News Agency
