Producer Prices
Inflation in industry reaches 3.28% in August, the highest increase since 2014
September 29, 2020 09h00 AM | Last Updated: September 29, 2020 10h02 AM
Price rise in soybean products played an important part in August's IPP high - Photo: AEN/PR
Industry prices rose 3.28% in August compared to July, the highest increase since January 2014, the beginning of the time series of the Producer Price Index (IPP). The result, released today (29) by the IBGE, mainly reflects the increase in the cost of food and activities related to petroleum refining and biofuels. For the first time, all 24 activities surveyed had price rise.
This is the thirteenth consecutive increase in the indicator, which measures the change in “factory-gate prices”, excluding taxes and freight, for 24 activities in the mining and quarrying and manufacturing industries. In the year, the IPP accumulated an increase of 10.80%. In the last 12 months, industry inflation reached 13.74%.
Food, with the main weight in the general index (about a quarter of the indicator), registered a 4.07% increase in the month, the biggest change since March (4.23%). As a result, the sector accumulated growth of 16.51% in the year. In comparison with August 2019, the change was 27.45%, the highest in the series.
“There were four products that most impacted the result of the food industry: soybean bran, soybean oil, blanched husked rice and sterilized UHT long-life milk. Out of the 4.07% change in the month, these four products represented 2.20 percentage points. The remaining 39 products analyzed accounted for 1.87 percentage points”, says IPP manager Manuel Campos Souza Neto.
“Rice and soybean products are also influenced by foreign market prices, as they are also exported. The rise of the dollar against the real in the month was 3.4% and 32.9% in the year”, adds the manager.
In terms of influence on the August indicator, in addition to food (1 p.p.), we highlight the petroleum refining and ethanol products (0.52 p.p.) and the mining and quarrying industry (0.44 p.p.).
The price of petroleum refining and ethanol products increased 6.24% compared to July. It is the third consecutive month of increase, which led to a cumulative change in these three months of 38.98%. Even so, in the cumulative rate for the year, the result is still negative (-11.41%), as well as in the August 2020/August 2019 comparison (-1.18%).
Other relevant changes were those of the mining and quarrying industries (8.43%), with the fifth consecutive increase in the year, of other chemical products (4.13%), second increase after two consecutive months of decline, and basic metals (3.12%), seventh increase in the year.
In relation to the major categories, it was intermediate goods - with a great influence on the index (2.26 percentage points) - that made prices jump, increasing 4.03% in August.
