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Inflation in industry stays at 1.31% in November, 17 of 24 activities rise

Section: Economic Statistics | Carmen Nery

January 05, 2022 09h00 AM | Last Updated: January 05, 2022 02h45 PM

The biggest influence on the July´s IPP came from petroleum products - Photo: Andre Motta de Souza/Petrobras Agency

The industrial prices rose 1.31% between October and November, a figure below the rise registered in October (2.26%). The cumulative index in the year hit 28.36% and, in 12 months, 28.86%, the fifth consecutive month of deceleration and the lowest value since February 2021 (28.50%). The rise had been 1.38% in November 2020. The data are from the Producer Price Index - IPP, released today (5) 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. Of them, 17 recorded positive changes in November. The biggest influences on the index came from oil refining and ethanol products (0.71 percentage points), other chemicals (0.47 p.p.) and mining and quarrying industries (-0.31 p.p.).


According to Manuel Campos Souza Neto, manager of the IPP, the sectors that mostly impacted the IPP in November were influenced by foreign trade. “Petroleum products, due to the increase in crude oil during the year, despite the drop this month and the mining and quarrying sector, due to the huge drop in the prices of iron ore,” explains him.

The survey shows that petroleum and ethanol products increased 6.63% this month, 14.26% in the last bimester and hit 71.04% in the cumulative index in the year and 80.13% in 12 months. Having posted the second highest positive change (4.90%), the chemical sector accumulated 60.03% in the year and 60.69% in 12 months. On the other hand, the mining and quarrying sector went through a different way, with a drop of 5.21% and accumulating a reduction of 22.56% in the quarter.

The manager of the survey highlights that, in March, the mining and quarrying sector accumulated 136.25% in 12 months. The same indicator fell to 29.17% in November, a drop of more than 100 percentage points, due to the reduction in the prices of iron ore. The retraction of the demand from China, which closed several steel plants, was among the reasons.

“The petroleum sector is affected by the reduction in the supply of crude petroleum oil, which rose its price in the whole world. That fuel has not been rising only in Brazil. A number of countries have been suffering even higher increases. The chemical sector is highly influenced by the costs of inputs, especially manure, whose prices increased worldwide,” said him.

He explains that the industry has had records of rises in the year, especially in the first quarter - January (3.55%), February (5.16%) and March (4.63%). Those three months influence the current result: the November indicator (1.31%) is lower than those registered in the beginning of the year. The first quarter not necessarily rises, but a set of factors like the pandemic and foreign market influenced this year,” completes the manager of the IPP.

Concerning the major economic categories, the IPP registered a rise of 1.19% in capital goods; 1.40% in intermediate goods; and 1.18% in consumer goods, of which 0.64% was the change seen in durable consumer goods and 1.29% in semi and non-durable consumer goods.

More about the survey

The IPP aims at measuring the average change of sale prices received by the domestic producers of goods and services, as well as its evolution over time, signaling the short-term inflationary trends in Brazil. It is a key indicator for the macroeconomic follow up and, consequently, a valuable analytical instrument to decision takers, either public or private.

The survey investigates, in slightly more than 2,100 enterprises, the prices received by producers, free from tax, tariffs and freight, defined according the most usual commercial practices. Nearly 6 thousand prices are collected monthly. The complete tables with the results are available at Sidra.

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