Pressed by the derivatives of the extraction of soybean oil, meat and orange juice, the industrial prices changed -0.84% between September and October, according to the Producer Price Index - IPP released today by the IBGE. In this type of comparison, this was the first negative result since July 2017. The index accrued 13.04% in the year and 15.12% in the comparison with October 2017.

The devaluation of the dollar was one of the main factors that influenced this negative change. "Bran and other residual products from the extraction of soybean oil, frozen meat and concentrated orange juice are mainly destined to exportation", explains Alexandre Brandão, IBGE´s manager of Analysis and Methodology.

Having also forced the indicator downward, fresh and chilled beef are mostly destined to the domestic market with an extra supply in October. "In this case, the retraction of the purchasing power of the households helps to explain the drop in the domestic demand", complements Brandão.

The IPP 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.