IPP
Industry prices hits the third biggest drop since 2013
August 29, 2019 09h00 AM | Last Updated: August 29, 2019 04h52 PM
The drop in exports and Real appreciation against the Dollar made domestic industrial prices drop again. That is what shows us the Producer Price Index (IPP) of July, which shrank 1.24% over the previous month, after having been negative in June too (-1.14%).
Among the industrial activities comprised by the IPP of the IBGE, the four sharper drops were the ones in basic metals (-3.74%), petroleum refining and ethanol products (-2.67%), in other chemicals (-2.20%) and in food industry (-1,81%). And it was exactly the drop in industrialized food prices that exerted the most negative influence (-0.40 p.p.) on July IPP (-1.24%).
“The appreciation of the Real over the Dollar and the foreign market conditions knocked down the prices of general industry”, says Murilo Alvim, IBGE analyst. He stresses that the drop in July was the third sharpest decrease of the IPP since the beginning of the series in December 2013.
Of the industrial activities of greater weight in the IPP, the only one that kept a positive result was motor vehicles, with a change of 0.26%. Alvim explains that such a modest high was driven by some assemblers, which launched their new car models in July 2020.
