IPP
Meats lead to rise of industry prices by 0.91% in November
January 08, 2020 09h00 AM | Last Updated: January 08, 2020 04h23 PM
Prices of industry rose 0.91% in November 2019, in comparison with the previous month, according to the Producer Price Index (IPP), released today (8) by the IBGE. That was the fourth hike in a row, after a result of 0.60% in October. The result of November was influenced by the sector of food products, mainly of meats, pork and poultry, besides mining and quarrying industry.
The IPP measures the price changes of products at the "factory gate", without taxes and freight, of mining and quarrying industry and 23 sectors of manufacturing industry. With the result of November, industry inflation had a cumulative increase of 4.55% in the year. IN 12 months, the November rate was 2.92%, versus 0.33% in the previous month.
In November, 15 of the 24 activities surveyed recorded positive price changes. The four main ones were in mining and quarrying industry (4.86%), food products (3.48%), toiletries , soaps and cleaning products (-1.88%) and other transportation equipment (1.77%). In terms of influence, the highlights were food products (0.79 p.p.), mining and quarrying (0.22 p.p.), basic metals (-0.08 p.p.) and other chemicals (-0.07 p.p.).
“The rise of food prices was the biggest since September 2015 (5.47%), whereas the slaughtering and the production of meat increased 7.12%”, says the IPP manager, Manuel Campos Souza Neto. “There was a rise in the prices of beef, pork and poultry due to increased exports throughout 2019, mainly due to problems related to internal supply in China and to the depreciation of Real", adds Mr. Neto, as he observes that currency also affected sugar prices.
In the mining and quarrying sector, the positive contribution came from mining and quarrying industry and from crude oil. "The change of the latter may result from the change in oil prices in the international scenario. Together, iron ore and copper and crude oil pushed the mining and quarrying sector upwards and recorded the biggest change among all the 24 activities analyzed in the month and in terms of cumulative figures in the year", says Mr. Neto.
