Industry prices changed by 0.32% in January, a figure below that recorded between December and November (0.65%). In this same comparison, 18 out of the 24 activities recorded positive changes of prices, against 10 last month. The cumulative index in 12 months was 6.33%, against 5.19% in December 2019. Period RATE

The Producer Price Index (IPP) of the Mining and Manufacturing Industries measures the evolution of the prices of products "at the factory gate", free from taxes and freight, and encompasses information by major economic category, i.e., capital goods, intermediate goods and consumer goods (durable and semi and non-durable). The complete publication of the IPP can be accessed here.

From December to January 2020, the prices of mining and quarrying and manufacturing industries (overall industry) changed by 0.32%, a figure below what was observed in the comparison between December and November (0.65%). The four biggest changes  in January were observed in the following  activities: mining and quarrying industries (5.52%), basic metals (3.11%), rubber and plastic (2.01%) and food products (-2.01%).

The main influences, in the same comparison, were: food products (-0.47 percentage points), mining and quarrying industries (0.25 p.p.), basic metals (0.18 percentage points) and motor vehicles (0.10 percentage points).

The cumulative index in 12 months (January 2020 versus January 2019) reached 6.33%, versus 5.19% in December/2019.  Among the activities that recorded the biggest percentage changes in this indicator, the highlights were: mining and quarrying industries (29.71%), oil refining and ethanol products (19.81%), other transportation equipment (10.07%) and pharmaceuticals (9.84%).  The most influential sectors were: food products (2.02 percentage points), oil refining and ethanol products (1.88 percentage points), mining and quarrying industries (1.15 percentage points)  and motor vehicles (0.39 percentage points).

Among the major economic categories,  the change of prices (0.32%) against December led to the following results: 1.26% in capital goods; 1.33% in intermediate goods; and -1.24% in consumer goods, with a change of 0.56% observed in durable consumer goods and of 1.61% in semi and non-durable consumer goods.

From the result of overall industry, 0.32%, the influence of the major economic categories was as follows: 0.09 percentage points in capital goods, 0.71 percentage points in intermediate goods and -0.49 percentage points in consumer goods. In the case of consumer goods, -0.52 percentage points was due to price changes observed in semi and non-durable consumer goods and of 0.04 p.p. in durable consumer goods. 

The highlights were:

Mining and quarrying industry: in January 2020, prices increased 5.52% in relation to December. In the comparison with January 2019, sector prices changed by 29.71%. The activity stood out in terms of influence on the monthly indicator (0.25 p.p. out of 0.32%) and on the cumulative index in the last 12 months (1.15 p.p. out of 6.33%) of the general industry. Highlights to the influence of “iron ore” and “crude oil” in the activity indicators.

Food products: in January, the sector prices decreased 2.01% against December. In relation to January 2019, the change was 9.01%. Meats (beef, pork and  poultry), which had positively pushed the index, had an opposite effect this month. Among the five highlighted products, four are from the “slaughter and production of meat products” group and one, “granulated sugar”, from the “manufacture and refining of sugar” group. The highlights, by influence, were:  “fresh or cooled beef”, “granulated sugar”, “frozen poultry meat or giblets” and “frozen pork”, which account for -2.15 p.p. of the -2.01% change.

Oil refining and ethanol products: the change in the sector prices, in the comparison between January 2020 and December 2019, was 0.69%, below the figure recorded in December: 3.92%. In relation to the same month last year, the most recent prices, in January, were 19.81% higher (those from December 2019 were 20.37% higher than those from December 2018). Compared with December 2019, all the highlighted products had positive changes, except for “motor gasoline, except for aviation”. It is important to note that among the highlights “diesel fuel” is not listed, the item accounting for the biggest influence on the sector calculation (40.74%). The four highlighted products accounted for 0.65 p.p. out of 0.68%.

Basic metals: in the comparison between January 2020 and December 2019, there was a change of 3.11%, the biggest since September 2018, bringing the cumulative in 12 months to 3.12%, a lower result against the one in January 2019 (11.66%). This month’s result was achieved mainly because of the sector of steel products, which represented a change of 3.76%. "Carbon steel ingots, blocks, rods or plates", “carbon steel hot-rolled coil, uncoated”, “galvanized or chromed steel coils or plates” and "gold for non-monetary use" had positive changes. These four products represent 2.01 p.p. of the monthly change, and the other 20 products, 1.10 p.p. Among the four products mentioned as highlights in terms of influence on the monthly result, two are common in the analysis of the cumulative figure in 12 months: “carbon steel ingots, blocks, rods or plates”, with a negative change, and “gold for non-monetary use”, with a positive figure. The products “aluminum plates and strips, with thickness higher than 0.2mm”, with positive change, and “aluminum oxide (calcined alumina)”, with a negative result, complete the highlights of the activity.

Motor vehicles: in January, compared with the previous month, the change recorded in the sector was 1.23%, the fifth positive change in a row and the biggest one since January 2018 (1.27%). The cumulative change in the last 12 months was 4.67%. For the sake of comparison, in January 2019 the sector had a cumulative change of 6.19%. The “manufacture of cars, vans and utility”, the economic group analyzed in the activity, presented, in January, a price change of 1.22% in relation of December. It is worth pointing out that, in the last 12 months analyzed, the group presented an average price increase of nine times and a cumulative change of 4.44%.