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IPP

Industrial prices rise 0.92% in August, after six months of decline

Section: Economic Statistics | Carmen Nery

September 28, 2023 09h00 AM | Last Updated: September 29, 2023 12h16 PM


Petroleum refining accounted for 0.72 percentage points in the 0.92% change in the IPP in August - Photo: André Mota de Souza/Ag Petrobras

 Industry prices rose 0.92% in August compared to July, returning to a positive rate after six months of consecutive decline. The result for the year reached -6.32%, the most intense negative change ever recorded for the month of August since the beginning of the time series in 2014. The cumulative result in 12 months was -10.51%.

Data from the Producer Price Index (IPP), released today (28) by the IBGE, show that, in August, 12 of the 24 industrial activities surveyed had positive price changes in relation to July and 12 were negative. In July, 16 activities had negative results.

“This greater spread of positive changes is in line with the 2.1% depreciation of the Real against the Dollar, which had only occurred before March, and which raises the prices of both what we import and what we export”, analyzes Alexandre Brandão, IPP manager.

The three biggest changes in the indicator of the month appear among the four most influential ones: petroleum refining and biofuels (7.52%) mining and quarrying industries (6.56%; and wearing apparel (5.89%). The other activity that most influenced the result of the month was basic metals, however, from a negative price change (-2.67%).

“Petroleum refining accounted for 0.72 percentage points (opp) of influence in the 0.92% change of the general industry.  There were rises both n Diesel fuel and in gasoline, two products of high weight in refining”, completes Mr. Brandão.

After accumulating a drop of 13.82% in the period form may to July, the food sector has a slight increase of 0.08%, with a minor impact (it was, in module the tenth highest influence, accounting for 0.02 pp in 0.92%) despite being the sector with the greatest weight, nearly 25%.

The increase of 5.89% in the sector of wearing apparel has placed the sector as one of the four most influential activities in the result. According to Mr. Brandão, the increase is due to the new Spring-Summer collection.

“In turn, basic metals is one of the four major influences with a negative indicator (-2.67%). Iron ore prices had a significant drop in the months before August, affecting the sector of  basic metals, whose prices also fell due to the reduced demand for steel”, clarifies the IPP manager.

He highlights that the four most influential sectors accounted for 0.95 pp of the 0.92% change - which means that the other 20 sectors had a net negative influence on the result.

“This concentration is also spread over the major economic categories. Of the 0.92% change, intermediate goods accounted for 0.85 pp, influenced , in turn, by the products of refining and by mining and quarrying industries: Diesel fuel, Crude petroleum oil and Iron ore. Those products were the oner with highest influence in intermediate goods”, completes Mr. Brandão.

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 their 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 for decision makers, 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 IPP tables with results are available at Sidra.

The next release of the IPP, related to September, will be on October 26.


Keywords: Preços na indústria sobem 0, 92% em agosto, após seis meses de queda



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