IPP
International market boosts rise of 1.63% in industrial prices
April 30, 2019 09h00 AM | Last Updated: April 30, 2019 03h30 PM
Influenced by the rise in the prices of commodities, the industrial inflation rose 1.63% in March, compared with February. The change was leveraged by the mining and quarrying industries (12.13%) and by the manufacture of coke, petroleum products and biofuels (6.74%), which also impacted the most on the overall index.
The data are from the Producer Price Index - IPP, released today by the IBGE. The survey 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.
"The change in the international prices impacts the crude petroleum oil, which later reaches its derivatives", explains Alexandre Brandão, manager of the IPP. "This change is related to the prices of commodities and, in this case, of petroleum products, considering the price policy of following up the international changes. Gasoline and diesel impacted the most", complements him.
Although exerting a smaller impact, food products (0.71%) stood out as they reversed the picture of the previous month. "Food is the sector with the highest weight and impacted negatively last month, though it stayed on the positive side this month. In the case of this group, the demand for meat and poultry impacted on the rise. Hogs and pigs faced a problem in China, which increased the demand for beef and chicken from Brazil", explains Brandão.
Concerning the major economic categories, the rise in March was concentrated on intermediate goods (1.59%) and consumer goods (1.83%). The latter was pressed by the sector of semi and non-durable consumer goods (2.24%), since a number of durable goods dropped in this period (-0.03%). Nevertheless, capital goods registered a slight rise (0.91%).
IPP rises 9.98% compared with March 2018
In the comparison between March and the same month in 2018, the rise was of 8.98%. The highlight was also the mining and quarrying industries (31.09%) and petroleum products (19.25%), as well as other transportation equipment, except vehicles (15.22%), and food products (6.42%).
The rise in the annual comparison was widespread in the major economic categories. Capital goods recorded the highest price rise (11.41%), followed by intermediate goods (10.62%). Durable consumer goods (6.17%) and semi and non-durable consumer goods (5.24%) complete the list.
