Inflation in Industry
Industry prices change 2.33% in May, second highest rate in the series
July 03, 2018 09h00 AM | Last Updated: July 03, 2018 03h56 PM
Industry prices rose 2.33% from April to May this year, according to the Producer Price Index (IPP), released today by IBGE. This is the second highest rate in the series, which began in January 2014. The result for May was only below that presented in September 2015, when a variation of 2.99% was recorded.
"It is interesting to note that in September 2015, there was a depreciation of the real against the dollar, which was very high at 11.2%, and May was the second largest at 6.7%. Usually, the IPP follows the exchange rate”, said the manager of Analysis and Methodology of IBGE, Alexandre Brandão.
Still according to Brandão, the two main activities of IPP in May, Food and Oil Refining and Alcohol Products, were those that effectively pulled the rate up. Refining had an increase of 7.36% and had a influence of 0.85 percentage point (p.p.) on the index. Food had a variation of 3.21% and influence of 0.60 p.p.
With the result of May, the cumulative index of the year of the IPP was 5.96%. The cumulative rate in the 12-month period was 10.45%, falling only below the result of 10.89%, registered in October 2015. The IPP measures the evolution of prices of products "at the factory gate", without taxes and freights .
