For the seventh consecutive time, national industry prices have registered growth, with a gain of 0.61% in August 2024 compared to last July. The Producer Price Index (PPI) thus accumulated an increase of 6.42% in 12 months, while the cumulative figure for the year was 4.76%. In August 2023, the monthly rate was 0.75%.

In August 2024, 18 of the 24 industrial activities surveyed showed positive prices when compared to the previous month, in line with the of the index in the general industry. In July of this year, 21 activities had presented higher average prices compared to the previous month. The data was released today (26) by the IBGE.

“After a period of negative records, the IPP in 2024 reaches its seventh positive result in a row. The growth seen in August was slightly lower than that of July, with a highlight to price increases in the food and other chemical products sectors. On the other hand, the negative change seen in the activity of mining and quarrying industries helped contain the inflationary scenario in the industry”, explains Alexandre Brandão, IPP manager.

The industrial activities responsible for the greatest influences on the August result were food (0.32 pp), mining and quarrying industries (-0.25 pp), other chemical products (0.19 pp) and oil refining and biofuels (0.12 pp).

In terms of change, mining and quarrying industries (-5.06%), printing (2.85%), other chemical products (2.42%) and furniture (2.04%) were the highlights in August.

The food sector (1.33%) showed a positive change for the fifth consecutive month. The cumulative index for the year is 3.42%, different from what was observed in August 2023, when the cumulative result reached -6.14%. Regarding the cumulative rate in 12 months, the result of 7.10% recorded in August 2024 is the highest since October 2022 (8.15%). “This performance of the food industry can be explained by the rise in beef prices, due to problems in the supply of the product and an improvement in the population's income, which in turn leads to an increase in the demand for meat. There was also an increase in the demand for rice. The price of coffee, which has been rising for some time, is due to the international situation, with serious problems in production in Vietnam that destabilized supply worldwide”, adds Mr. Brandão.

The activity of mining and quarrying industries (-5.06%) showed negative behavior again after two months of increases. In addition to having exerted the second largest influence on the IPP result in August, it was the most intense (and the only negative one) among the four sectors that stood out most in this regard. Following the dynamics seen in the international market, there was a negative change  in the prices of the two most important products: “crude petroleum oils” and “iron ore and its concentrates, exc. pelletized/sintered”. “Although the sector’s prices fell significantly in August, the sector’s balance in 2024 is still positive when comparing August 2024 and August 2023”, observes Mr. Brandão.

Third in the ranking of influences in August of this year, Other chemical products surpassed the increase obtained in July (2.08%), achieving a growth of 2.42% in its average prices. This is the third positive result in a row, a period in which it accumulated a gain of 8.44%. In the year, the indicator has accumulated an increase of 11.33% and, in the last 12 months, of 12.67%.

The price increase in Other chemical products was observed in the three other groups investigated, with highlights including the 5.35% increase in “manufacture of resins and elastomers”, 1.48% in “inorganic chemical products” and 0.95% in “manufacture of agricultural pesticides and household disinfectants”.

The products that contributed most to the result of Other chemical products were “NPK-based fertilizers or manure”, which can be applied directly to the soil with the help of plows or harrows, applied before planting the crop, deposited in the planting line, below and to the sides of the seeds, or applied through irrigation or spraying, “unsaturated propene (propylene)” (an important input for the manufacture of various materials such as thermoplastic polymers, cosmetics, foams and also used for welding and brazing with blowtorches), “linear polyethylene, with less than 0.94 density ” and “high-density polyethylene (HDPE)”, which are products with applications in the packaging sector, such as films, bags and sacks, PET bottle caps, in the first case, and in the second case (HDPE), widely used in the manufacture of rigid bottles for household cleaning products, creams, shampoos and also used for the manufacture of pipes for transporting water and sewage. These four items together accounted for 1.18 pp of the 2.42% from August to July.

From the perspective of the broad economic categories, the price observed from July to August 2024 had the following impact: -0.18% in capital goods (BK); 0.38% in intermediate goods (BI); and 1.12% in consumer goods (BC), with the index in durable consumer goods (BCD) being 0.68%, while in semi-durable and non-durable consumer goods (BCND) it was 1.20%.

Learn more about the IPP

The IPP monitors 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 ones.

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. Approximately 6 thousand prices are collected monthly. The complete IPP tables are available at Sidra. The next IPP release, for September, will be on October 30th.

Keywords: Preços da indústria sobem 0, 61% em agosto, sétima alta consecutiva