IPP
High dollar presses industrial prices, which rise 0.70% in February
March 27, 2020 09h00 AM | Last Updated: March 27, 2020 04h12 PM
The prices of the mining and manufacturing industries increased 0.70% in February over January, when the change had been 0.35%. The information is from the Producer Price Index - IPP, released today (27) by the IBGE. The major factors that influenced on the index were the appreciation of the dollar and the drop in the price of the oil barrel in the international market.
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. In January, 17 sectors had increased their prices, jumping to 20 in February.
"It is due, at a great extent, to the depreciation of 4.7% of the Real against the Dollar between January and February. Sectors that use to sell abroad, like leather (3.40%) and tobacco (2.38%), registered higher price rises", assesses Alexandre Brandão, manager of the survey.
Among the segments that mostly weight in the index, like food, petroleum products, other chemicals, basic metals and vehicles, all of them increased their prices, except petroleum products. The biggest positive impact came from food products (0.37 p.p.), which had recorded a price drop of 1.91% in January, yet it rose in February (1.60%).
Other activities that recorded significant rises and influenced on the positive change of the IPP were mining and quarrying industries (5.51%), leather articles and footwear (3.40%) and basic metals (2.81%). It is worth highlighting that the sector of other chemicals, which includes manure and fertilizers, posted a positive rate (1.24%) after four months of negative changes.
Having decreased 6.34%, the major negative influence on the index came from oil refining and ethanol products, which registered its lowest rate since July 2019 (-7.24%). "The drop in the petroleum products avoided a higher rise in the overall index", states Alexandre Brandão.
Concerning the cumulative indicator in the year, the change in the industrial prices was of 1.05%. In the perspective of this indicator, mining and quarrying industries (11.34%), basic metals (5.89%), oil refining and ethanol products (-5.73%) and other transportation equipment (4.18%) stood out.
In the comparison between February 2020 and the same month of 2019, the price change was of 6.62%, against 6.36% in January 2020. The four highest price rises were in mining and quarrying industries (26.76%), other transportation equipment (13.25%), food products (11.45%) and pharmaceuticals (10.12%).
