Industry prices changed by 0.45% in September 2019, a lower result than that of August (0.91%). The cumulative index in the year was 2.94% and in the last 12 months, -0.99%. In September 2019, of the 24 surveyed activities, 17 presented price increases. For further information, refer to the Producer Price Index (IPP) support material.

The four biggest changes noticed in September 2019 were in the following industrial activities: Mining and quarrying industry (-10.49%), oil refining and alcohol products (3.64%), other transportation equipment (1.85%) and tobacco (1.69%).

Regarding influence, the highlights were mining and quarrying industries (-0.56 pp), oil refining and ethanol products (0.36 pp), food (0.23 pp) and other chemical products (0.08 pp).

In September 2019, the cumulative index of the year (September 2019 against December 20018) achieved 2.94%, against 2.48% in August 2019. Among the activities that had the biggest percentage change in this indicator, the highlights were: mining and quarrying industries (16.68%), oil refining and ethanol products (11.84%), pulp and paper (-9.35%) and pharmaceutical products (8.51%). Moreover, the sector with major influence were: oil refining and ethanol products (1.10 pp), mining and quarrying industries (0.70 pp) and pulp and paper (-0.33 pp).

In the cumulative index over 12 months (comparison between September 2019 and September 2018), the price change was of -0.99% against 1.43% in August 2019. The four biggest changes were pulp and paper (-12.59%), other chemical products (-10.38%), pharmaceutical products (9.31%) and leather articles and footwear (-6.95%).

Among the major economic categories, the change of 0.45% in comparison with September and August this year had the following effects: 0.62% in capital goods; 0.39% in intermediate goods; and 0.51% in consumer goods (0.62% in durable consumer goods and 0.48% in semi-durable and non-durable consumer goods). The influence was: 0.05 pp in capital goods, 0.21 pp in intermediate goods and 0.19 pp in consumer goods (0.15 pp in semi-durable and non-durable consumer goods and 0.04 pp in durable consumer goods).

The cumulative changes in the year of the major economic categories were: 5.02% in capital goods (with influence of 0.37 pp), 2.33% in intermediate goods (1.27 pp) and 3.42% in consumer goods (1.30 pp). In the last case, the results were influenced by durable consumer goods (0.21 pp) and semi-durable and non-durable consumer goods (1.09 pp). In relation to the last 12 months, the changes were: capital goods (4.98%), intermediate goods (-3.30%) and consumer goods (1.71%).

See the main highlights below:

Mining and quarrying industries: in September this year, the sector’s prices fell in comparison with August (-10.49%). This price behavior in the month led the cumulative of index of the year to 16.68%). In the 12 month comparison, it had a positive change of 4.28%, in relation to September 2018.

In the results of mining and quarrying and manufacturing industries, in terms of influence, the sector was a highlight in the monthly change (-0.56 pp over 0.45%) and in the cumulative of the year (0.70 pp over 2.94%). According the results in previous month, the changes in mining and quarrying industries were a highlight among the surveyed activities. Those changes are due to the oscillation of iron prices in the international market.

Food: the activity price changed in September on average 1.06%. As a result, in the cumulative index of the year, the change achieved 1.76%. In the comparison with the same month in the previous year, the current level is 1.02% higher. The activity had the biggest contributions among all activities (23.31%). The sector stood out because it was the third biggest influence both in the comparison between September 2019/August 2019, 0.23 pp, in 0.45%, and between September 2019 and December 2018, 0.40 pp., in 2.94%.

In the change of 1.06% seen from August to September, the joint influence of the four most influential products was of 0.97 pp, namely: “crude soybean oil, even degummed”, “fresh and cooled beef”, “VHP (very high polarization) sugar” and “frozen beef”.

Pulp and paper: the sector’s prices recorded a change of -1.64% against August 2019, taking the cumulative index of the year to the result of -9.35%. The cumulative index over 12 months was of -12.59%. Among the products that compose the output of pulp and paper, the highlights, in terms of influence, in the change against August, were: “chemical wood pulp, soda or sulphate, excluding dissolving pulp”, “uncoated paper for writing, printing and other graphic purposes: offset, bibles, etc.”, “corrugated cardboard box, printed or not”, and “toilet paper”, with negative rates. Those four products summed up -1.50 pp.

Oil refining and alcohol products: after three consecutive months with negative monthly changes, September result against August was positive in 3.64%. It is worth noticing that, between June and August, the prices accumulated a change of -10.00%, and now, the cumulative index between June and September was of -6.73%. Even so, in the cumulative index of the year, the result was of 11.84%, which means that, in September the cumulative rate returned to the same level that it had been in June, 11.23%, yet less than that of  May, 19.91%. However, in the comparison to the same month of 2018, the recent prices were at inferior levels (-4.52%).

The influence of the four highlighted products - “diesel fuel”, the major weight in the calculation of the sector (40.74%), “gasoline, excluding aviation gasoline”, the second position (23.05%), ”fuels, except diesel fuel and biofuel” and “biodiesel -, all of them with positive change, was of 3.88 pp, in 3.64%.

Other chemical products: in the comparison between September and August, the sector’s prices changed, on average 0.97% - the sixth positive result this year. Although there were many positive results in the price this year, the cumulative change in 2019 was of -3.24% (which succeeds the August's one of -4.18%). In the cumulative index over 12 months, for the third consecutive time, the result is negative (-10.38%) and it is the lowest value since January 2017. This result is compatible with the growing level of chemical products imports.

The third biggest contribution to the index calculation of the sector (8.59%), the sector’s highlight was also due to the following reasons: the fourth influence, in the comparison between September and August (0.08 pp, in 0.45%) and the second biggest change, in module, in the cumulative index over 12 months (-10.38%). With an influence of 0.47 pp, three out of the four highlighted products in the comparison between September and August recorded positive results, which are: “NPK fertilizers”, “mineral or chemical phosphate fertilizers” and “polypropylene (PP)”. The only highlighted product in terms of influence, yet with a negative result, is “herbicides for agriculture purposes”.