IPP
Prices in idustry rise 1.11% in September
October 26, 2023 09h00 AM | Last Updated: October 27, 2023 06h23 PM
For the second consecutive month, industry prices had a positive change, registering an increase of 1.11% in September compared to August. The Producer Price Index (IPP) accumulates -7.92% in 12 months. The cumulative index in the year reached -5.43%. This is the lowest year-to-date rate ever for a month of September since the beginning of the time series, in 2014.
In September 2023, 13 of the 24 industrial activities surveyed showed positive price changes when compared to the previous month. In August, 10 activities had shown positive price changes in relation to the previous month. The data was released today (26) by the IBGE.
The industrial activities with the most significant price changes in the September result were petroleum refining and biofuels (8.28%), beverages (-5.09%), mining and quarrying industries (3.86%) and printing (1.78%). %). The biggest influences came from petroleum and biofuels (0.85 pp), mining and quarrying industries (0.19 pp), beverages (-0.13 pp) and other chemical products (0.12 pp).
“Similarly to what happened last month, in September we saw an increase in refining prices, which is the second most important sector in the Brazilian industry. It is only behind food, whose recent change does not place it among the four most significant”, explains Alexandre Brandão, an analyst of the IPP.
The petroleum refining and biofuels sector was the highlight of September, showing the greatest change and exerting the greatest impact on the month's index. This is the sharpest change in the monthly comparison, the third highest in the year and the second highest in the 12 months. In terms of influence, it came in first place compared to the previous month and year-to-date, and second in 12-month terms.
“The behavior of refining prices is directly linked to the rise in crude petroleum prices, which have been increasing worldwide due to the recent decrease in production”, adds Mr. Brandão.
With the second largest change and third most significant influence in September, the beverage sector had the most intense negative change since the beginning of the time series, in 2014. The three products with the greatest weight in the activity, “beers and draft beer” (55, 35%), “soft drinks” (29.87%) and “syrups for drinks for industrial purposes” (11.74%) showed a negative change, which shows a generalized price drop. “In addition to a price repositioning, costs in the sector are falling. Therefore, there is room for price drops”, observes Mr. Brandão.
The activity of mining and quarrying industries came in third place in the ranking of greatest changes and second among influences. According to Mr. Brandão, this result is explained by the increase in crude oil prices. “The reduction in global petroleum supply, causing price increases, has repercussions on the Brazilian industry”, he claims.
From the perspective of the major economic categories, the price change observed from August to September had the following impact: 0.37% change in capital goods (BK); 1.81% in intermediate goods (BI); and 0.22% in consumer goods (BC), with the change seen in durable consumer goods (BCD) being 0.01%, while in semi-durable and non-durable consumer goods (BCND), it was 0.26 %.
More about the survey
The IPP tracks the average change in sales prices received by domestic producers of goods and services, and their evolution over time, signaling short-term inflationary trends in the country. It is an essential indicator for macroeconomic monitoring and a valuable analytical tool for decision makers, either public or private.
The survey investigates, in just over 2,100 companies, the prices received by producers, exempt from taxes, tariffs and freight, defined according to the most common commercial practices. Around 6 thousand prices are collected monthly. The complete IPP tables are available on Sidra. The next release of the IPP, for October, will be on November 29th.
