Inflation in Industry
Food sector contributes to growth of producer prices in April
May 29, 2018 09h00 AM | Last Updated: June 05, 2018 10h41 AM
With a 1.28% increase in April, food industry prices are on the rise for the third consecutive month after 14 negative rates. The information, released today by the IBGE, comes from the Producer Price Index (IPP), which grew 1.56% compared to March.
Food products, which had the fourth highest weight in the March index, moved to the second largest influence among the 24 activities surveyed in April, just behind petroleum refining and ethanol products.
"The dollar appreciation and the real depreciation taking place in recent months have influenced the increase, especially in the highly exported products, such as meat and soybeans. The fall in the price of granulated sugar [in the market], due to the beginning of the harvest and the low demand in the month, also helped raise the producer price," explained IBGE researcher Manuel Campos.
Among the other categories that exerted the greatest influence on the monthly result, the most significant were mining and quarrying industries, 4.83%, petroleum products and biofuels, 4.31%, basic metals, 2%, and other chemical products, with 1%. The printing industry, the pharmaceutical industry and the beverage industry had a reduction of respectively 0.41%, 1.52% and 1.91% in the month.
With this result, the IPP accumulated a high of 3.54% in the year and of 8.03% in the last 12 months. Compared to April 2017, the rate was -0.11%.
