The industry prices changed -0.28% in November 2015 in relation
to the previous month, registering a decrease over October (1.77%). The cumulative indicator in the year was 9.35%, against 9.66% in October. The cumulative index in 12 months was 9.55%, against 10.89% in October Among the 24 activities of the mining and quarrying and manufacturing industries, 12 of them recorded positive price changes, against 18 in the previous month.
The Producer Price Index (IPP) of the Mining and Quarrying and Manufacturing Industries measures the evolution of the prices of products 'at the factory gate', without taxes and freight. It includes information on the major economic categories, like capital goods, intermediate goods and consumer goods – durable, semi-durable and non-durable. The complete publication of the IPP can be accessed here.

Table 1
Producer Price Index, according to Overall Industry and Sections - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

In November 2015, the price change of -0.28% against October reflected in the Major Economic Categories like this: -0.22% in capital goods; -0.76% in intermediate goods; and 0.50% in consumer goods, being -0.15% in durable consumer goods and 0.71% in semi and non-durable consumer goods.

The influence of the Major Economic Categories on the Overall Industry (-0.28%) was -0.02 p.p. from capital goods, -0.43 p.p. from intermediate goods and 0.17 p.p. from consumer goods. In the case of consumer goods, 0.18 p.p. was due to price changes observed in semi and non-durable consumer goods and -0.01 p.p. in durable consumer goods.

The price changes in industry recorded a cumulative rate of 9.35% in the year, being 12.37% from capital goods (influencing 1.04 p.p.), 9.46% from intermediate goods (5.39 p.p.) and 8.43% from consumer goods (2.92 p.p.). In this last case, the increase was influenced by “durable consumer goods” (0.48 p.p.) and by “semi and non-durable consumer goods” (2.43 p.p.).

In the cumulative index in 12 months in industry (9.55%), the changes were: capital goods, 14.20% (1.18 p.p.); intermediate goods, 9.05% (5.19 p.p.); and consumer goods, 9.25% (3.18 p.p.), being the influence of 'durable consumer goods' 0.51 p.p. and that of 'semi and non-durable consumer goods', 2.67 p.p.

Table 4
Producer Price Index, according to Overall Industry and Major Economic Categories - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

12 of 24 industrial activities rise

In November 2015, 12 out of the 24 activities registered positive price changes in relation to the immediately previous month, against 18 last month. The four highest changes were in mining and quarrying industries (-10.08%), wood (-2.74%), leather articles and footwear (-2,54%) and beverages (-2.11%). The highest influences on the change of -0.28% came from mining and quarrying industries (-0.33 p.p.), oil refining and ethanol products (0.18 p.p.), food products (0.08 p.p.) and other chemicals (-0.07 p.p.).

In November 2015, the cumulative index in the year hit 9.35%, against 9.66% in October 2015. The highest changes in this indicator were: other transportation equipment (31.13%), tobacco (29.52%), pulp and paper (23.56%) and other chemicals (15.03%). The biggest influences came from food products (2.57 p.p.), other chemicals (1.56 p.p.), pulp and paper (0.80 p.p.) and other transportation equipment (0.66 p.p.).

The price change was 9.55% in relation to November 2014, against 10.89% in the previous month. The four highest price changes occurred in other transportation equipment (34.05%), tobacco (32.18%), paper and pulp (26.22%) and food products (14.19%). The sectors that exerted the greatest influence were food products (2.69 p.p.), other chemicals (1.48 p.p.), pulp and paper (0.87 p.p.) and other transportation equipment (0.71 p.p.).

Mining and quarrying industries: in November, the prices of this sector declined 10.18%, the highest drop registered in the mining and manufacturing industries. As a result, the cumulative index in the year reversed from a positive figure in October (7.54%) to -3.48% in November. In the time series comparing the current month with the same month in the previous year, started in December 2014, all the figures were negative (-13.50% in November).

Food products: in November, the prices of this sector changed 0.40% against October. As a result, the cumulative index in the year reached 13.49% and the cumulative index in 12 months stayed at 14.19%. The two products that headed the highlights in terms of the influence on the monthly comparison – 'residue of soybean oil extraction' and 'crystallized sugar' – also appeared among the highest changes. In the case of 'residue of soybean oil extraction', the change was negative. To complete the list of the four products with the highest influence, 'crude degummed soybean oil' and 'refined soybean oil' recorded positive changes in the prices, like 'crystallized sugar'. These four items accounted for 0.19 p.p. in the 0.40% change.

Pulp and paper:  The prices of this sector retreated 0.02% in November over October, posting the first negative figure since April 2015 (-1.06%). The cumulative index in the year declined from 23.59% in October to 23.56%, yet still the third highest rate among all the sectors of the mining and manufacturing industries. The cumulative index in 12 months (26.22%) was also the third highest one. The four products with the highest influence on the monthly comparison – 'pulp', 'toilet paper', 'disposable diapers' and 'notebooks' – added up to -0.14 p.p. (in 0.02%). Pulp was the only one that registered a negative change in the prices. Therefore, the behavior of this commodity oriented the November´s result. Now contributing positively, 'pulp' was still heading the list of the highest influences in the other comparisons. In addition, the other products impacted positively in these other comparisons, which was consistent with the fact that 'pulp' being an input for its own sector.

Petroleum refining and alcohol products:  Compared with October, the prices of this sector changed 1.77%, on average, in November, registering the second highest rate in the year and only after the October´s rate (2.77%). As a result, this sector recorded a cumulative index in the year of 4.05% and, in 12 months, of 5.71%. In the case of products with higher influence, only 'naphtha' changed negatively. The highest contribution came from 'ethyl alcohol (anhydrous or hydrated)', whose prices were pressed both by a higher demand and by a constrained supply. The products with the highest weights in this sector, 'diesel fuel and other fuel oils' and 'motor gasoline', also influenced positively, though not standing out in terms of price changes. These four items accounted for 1.58 p.p. (in 1.77%).

Other chemicals: the chemical industry posted a negative change of prices of 0.63% in November, breaking a series of five consecutive months of positive changes. It generated a cumulative index in the year of 15.03% – the second highest rate in this type of comparison in all the time series of the IPP – and of 14.14% in 12 months.

It should be highlighted that regardless of indicating a negative average change of prices, the results against the previous month of the four products with the highest changes in prices were positive: 'caustic soda or potash', 'LDPE', 'unsaturated propene (propylene)' and 'printing ink' (none of them among the four products with the highest weights in this activity). The products that mostly influenced the November´s figures were 'NPK-based manure and fertilizers' and 'polypropylene (PP)', both of them registering negative price changes and with high weights in this activity.  The four products that mostly influenced in the month-over-month comparison accounted for -0.36 p.p. in the result of -0.63%. In other words, the other 28 products contributed with -0.27 p.p.

Motor vehicles: the price change reported between September and October was 0.23%, below that of September (1.14%), the second highest in the year (January, 1.33%). Considering the October´s figure, the cumulative index in the year hit 5.94%, a higher rate than that reported in October last year (5.16%). The result in relation to October 2014 (7.60%) was lower than that in September (8.00%).

This sector stood out as a result of the influence of the change in relation to October 2014, the fourth highest among the industrial activities (0.82 p.p.), as well as for being the third highest sector in terms of contribution to the index (10.76 p.p.).

Other transportation equipment: in November 2015, the prices of this sector recorded a negative change of 2.0% over the previous month. The result of this indicator was linked to the change of the currency rate (R$/US$). The cumulative index in the year changed 31.1% against a currency change of 43.2%, and changed 34.1% in the last 12 months against a currency change of 48.3%.

In November over October, this sector reported a reduction in the prices of 'airplanes weighting more than 2,000kg' and 'motorcycles with more than 50cm3' and an increase in the prices of 'manufacture and maintenance of ships'. In the other indexes – cumulative in the year and in the last 12 months –, all the products registered positive figures.