IPP
Industrial prices rise 0.65% in December, stay at 5.19% in 2019
January 31, 2020 09h00 AM | Last Updated: January 31, 2020 11h07 AM
The industrial prices increased 0.65% in December 2019 in relation to November and closed the year with a rise of 5.19%, well below the annual index of 2018 (9.64%). The data are from the Producer Price Index - IPP, released today (31) by the IBGE, which measures the change in the prices of products at the "factory gate", without tax or freight, of 24 activities of the mining and manufacturing industries.
The prices of meat and fuels exerted a big impact on the results. The sector of food registered the highest value for a year closure (10.12%) since December 2015, when it had recorded 14.28%.
"The biggest changes are concentrated on food and petroleum products, which had a weight of 0.94 percentage points (p.p.) in the December´s index. Looking at the major economic categories, non-durable consumer goods led once again with a change quite higher than the others (0.55 p.p.), mainly influenced by meat and fuels derived from petroleum", remarks Alexandre Brandão, manager of the survey.
The sector of mining and quarrying industries posted a negative change (-2.52%) in December in relation to the previous month, though it rose in the cumulative rate in 12 months (13.59%). This activity stood out in the indicators of the overall industry, influenced by crude petroleum oil and iron ore.
On the other hand, the sector of food products changed 2.38% in December, with successive price rises since August (1.01%). All the highlights are from the group of slaughtering and manufacture of meat products.
"You cannot miss the point that the exports of meat have been stimulated along the year, particularly due to problems of domestic supply in China, but also due to the devaluation of Real (5.8% in the cumulative in the year). In the case of the exchange rate, the effects also fall over other products of the exportation guideline, like residues of soybean oil extraction", remarks Alexandre Brandão.
The industry of petroleum refining and alcohol products also registered a positive change in the December prices in relation to the previous month (3.82%), being the eighth rise in 2019, which caused this sector to accrue a change of 20.25% in the average prices. Compared with November, the product that mostly influenced the sectoral result was diesel fuel, followed by gasoline, except for aviation. Ethyl alcohol (anhydrous or hydrated) and fuel oil, except diesel also increased their prices.
In the major economic categories, capital goods rose 5.98% in the year, intermediate goods, 2.89%, and consumer goods, 8.36%. In this last case, the result was influenced by durable consumer goods (0.30 p.p.) and by semi and non-durable consumer goods (2.87 p.p.).
