In June 2019, general industry prices fell 1.14% in relation to May, below the result seen between May and April (1.39%). In relation to May 2019, 8 of the 24 activities surveyed recorded positive price changes. The result had been 2.27% in June 2018. The cumulative index in the year reached 2.76% and, in 12 months, 3.75%. See the support material of the Producer Price Index (IPP) for more information.

The biggest four changes in June 2019 were in the following industrial activities: oil refining and ethanol and products (-7.24%), pulp and paper (-4,65%), leather articles and footwear (-3,56%) and tobacco (-2.91%). Furthermore, the leading influences were oil refining and ethanol and products (-0.78 pp), food products (-0.19 pp), pulp and paper (-0.16 pp) and pharmaceutical industry (0.08 pp).

In June 2019, the cumulative index in the year reached 2.76%. Among the activities that accumulated the biggest changes are mining and quarrying industry (22.63%), oil refining and ethanol and products (11.23%), pharmaceutical industry (9.35%) and pulp and paper (-6.09%). Furthermore, the leading influences were oil refining and ethanol and products (1.05 pp), mining and quarry industry (0.94 pp), pharmaceutical industry (0.29 pp) and food products (0.27 pp).

Compared to June 2018, the price changes have been of 3.75% in June 2019, against 7.32% in May 2019. The biggest four price changes occurred in the mining and quarry industry (28.61%), pharmaceutical industry (11.26%), machinery and equipment (9,37%) and furniture (8.13%).

Among the major economic categories, the decline of 1.14% in June was distributed as follows: -0.56% in capital goods; - 1.15% in intermediate goods; and  -1.24% in consumer goods, of which 0.04% belong to changes observed in durable consume good and -1,,51%, in semi-durable and non-durable consumer goods. In addition, the influence of the Major Economic Categories was of -0.,04 pp in capital goods, -0.63 pp in intermediate goods and -0.47 pp in consumer goods.

As to the cumulative index in the year, it has risen 2.76%, of which 2.77% are changes in capital goods (with influence of 0.21 pp), 2.59% in intermediate goods (1.41 pp) and 3.02% in consumer goods (1.14 pp). For instance, this result was influenced at 0.19pp in products of durable goods and 0.96 pp  in semi-durable and non-durable goods.

Next, the main highlights:

Mining and quarry industry: in June, the price changed negatively (-0.10%) compared to previous month. Therefore, the rising trend that had been noticed in the last four months was reversed. The indicators of cumulative indexes in the year and over twelve months have had changes of 22.63% and 28.61%, respectively. Both changes stood out as the principal ones in the general industry. As to influence, the sector stood out in the cumulative indicator in the year (0.94 pp over 2.76% in the general industry).

Food products: In relation to May, the price changes in the sector was of -0.88%, the first negative one after three positive ones in a sequence. With this result, the cumulative index retreated from 2.09% to 1.20% (in June 2018, it had been 8.93%). Comparing with the same month in the previous year, the change was 0.56%, the lowest result of this kind of comparison since May 2018 (2.12%). The sector was a highlight in terms of influence, being the second most intensive in the comparison between June and May (-0.19 pp, in -1.14%) and the fourth in the cumulative index (0.27 pp, in 2.76%).

Among the list of products with the highest changes and influence, only one appears in both lists: “sterilized milk/UHT/long life milk”, in this case with negative impact. The influence of the four selected products was of -0.64 pp, with changes of -0.88%, meaning that the influence of the other 39 products was of -0.24 pp.

Pulp and paper: The manufacturing of pulp and paper presented a price change of -4.65% related to May. This was the highest decline noticed in the sector in the whole time series, which started in January 2010. With this result, the activity presented a cumulative change in the year of -6.09% (the lowest result noticed for a June) and a cumulative change in 12 months of -5.06% (the second lowest result for a June, only behind June 2011, which was -6.73%).

In comparison to May, the products that most influenced the results were “chemical wood pulp, soda or sulphate other than dissolving grades”(which are cellulose, the most important product in the sector), “uncoated Kraft paper for packaging”, “uncoated paper for writing, printing and others graphic purposes: offset, blible, etc, uncoated” and cardboard or paperboard, uncoated or coated with inorganic substances, all with negative changes. These four products, summed, totaled -4.64 pp, whichmeans the other seven activity products contributed with -0.01 pp.

Oil refining and ethanol products: the price change throughout May and June was of -7.24%, the first negative in the year (the last had been in December 2018, -9.36%). As a result, the cumulative index in the year receded from 19.91% in May to 11.23% in June. In comparison with the same month in the previous year, the change was 2.40%, the lowest result from this perspective since August 2017, 6.45%.

In relation to the highlighted products in terms of changes and influence, there is a great coincidence, although “ethyl alcohol (anhydrous or hydrated)” appears among the highest influences, but not among the highest changes (“aviation kerosene”). All highlighted products in terms of influence had negative price changes, their total influence is of -7.45 pp, therefore the other products had a positive influence of 0.21 pp.

Other chemical products: the price change noticed in the sector was, in comparison to June and May, 0.78%, the fourth positive result in a row in the year. Thus, the cumulative index in the year changed from -3.17% in May to -2.42% in June. Comparing June 2019/June 2018, the change was 1.18%, the lowest result of this kind of comparison since September 2017 (1.92%). Among other highlighted products in terms of influence, only one had a negative price change, “NPK fertilizers”.

Pharmaceutical industry: The price change in June was 2.39%, however this index has been positive since February 2019.

The pharmaceutical industry stood out this month for presenting the third highest change price in the general industry in the cumulative index in the year and the second highest in the last twelve months, 9.35% and 11.26%, respectively. The 9.35% the cumulative index in the year is the highest one since the beginning of the tiem series (January 2010). Furthermore, the cumulative change in the last twelve months (11.26%) was aslo the highest in the time series.

The four products with highest inflence this month in comparison with the previous one contributed with 2.27 pp, in a change of 2.39%, and the other eight products, with 0.12 pp.

Motor vehicles: in June, the change noticed in the sector was 0.08%, when compared with the previous month, following the upward trend in the last six months. With this result, the cumulative change in the year and the cumulative change in the last twelve months reached, respectively, 2.34% and 5.57%.

Among the four products of major influence between May and June, three had a positive impact on the index: “gasoline or biofuel passenger car with any engine power output”, “ air, oil or fuel filter for motor vehicle engines” and “gear and transmission systems for motor vehicles”. Only “parts or accessories for motor vehicles’ engine systems” had a negative impact. The influence of these four products that most had an impact in the month change in relation to the previous month was 0.04 pp, meaning that, the other nineteen activity products also contributed with the same 0.04 pp.