IPP
Rising for the eighth consecutive time, industrial prices increase 0.66% in September
October 30, 2024 09h00 AM | Last Updated: October 30, 2024 03h05 PM
For the eighth month in a row, national industrial prices grew, with a gain of 0.66% in September 2024 over last August. Therefore, the Producer Price Index (IPP) accumulates a rise of 6.06% in 12 months, whereas the cumulative index in the year stayed at 5.51%. The monthly rate had been 1.06% in September 2023.
In September 2024, 17 out of 24 industrial activities surveyed registered positive changes of price when compared with the previous month, following the change of the overall industry. In August this year, 18 activities had recorded higher average prices in relation to the previous month. The data were released today (30) by the IBGE.
"The September´s IPP repeats the scenarion seen in August, not only for having the same change rate (0.66%), but also for being non-durable consumer goods the major influence for the result. Like the previous month, manufacture of food was key to the positive price change in the overall industry. VHP sugar and beef stood out in this movement of price rise," explains Felipe Câmara, an IPP analyst.
The industrial activities responsible for the biggest influences on the September´s figure were food products (0.90 p.p.), mining and quarrying industries (-0.27 p.p.), petroleum refining and biofuels (-0.13 p.p.), and pulp and paper (-0.10 p.p.).
In terms of change, mining and quarrying industries (-5.85%), food products (3.70%), pulp and paper (-2.99%), and footwear and leather products (-2.01%) were the highlights in September.
The food sector (3.70%) reported a positive change for the sixth month in a row. The cumulative index in the year is at 7.54%, different from that registered in September 2023, when the cumulative change hit -5.76%. In relation to the cumulative change in 12 months, the result of 10.92% registered in August 2024 is the highest one since August 2022 (12.72%). "The dynamics of the food industry can be explained by the rise in the prices of beef and VHP sugar. In the case of beef, the reduction in the pasture area due to drought and burns over the last months reduced the supply of inputs to the productive chains, like those of beef and milk. VHP sugar, in turn, is inserted in a seasonal movement. The major harvesting period of the product is about to finish. Moreover, the production is facing harsh climate situations that reduce the supply of sugarcane for processing," adds Câmara.
The activity of mining and quarrying industries (-5.85%) showed a negative behavior for the second consecutive month, exerting the second biggest influence on the IPP result in September. "The performance of mining and quarrying industries reflects more imediately the dynamics of the foreign price of petroleum and iron ore. It is a context with a comfortable balance between supply and demand," notes Câmara.
Ranked in the third position of influences in September this year, the sector of Petroleum refining and biofuels (-0.13 p.p.) registered a negative price change this month (-1.27%). It occurs after seven consecutive months of positive changes. Many petroleum drivatives reduced their prices. However, those with the highest weight in the segment ("diesel fuel" and "gasoline, except for aviation", in this order) did not record significant changes, either negative or positive, so as to be positioned among the major influences this month. Felipe Câmara reminds that "the major negative influence on the refining activity came from fuel alcohol. Another negative highlight was the sector of pulp and paper, which can be explained by the moment of low demand faced by pulp. It took the entire activity downward, despite the rise in some derivatives."
Under the perspective of the major economic categories, the price change between August and September 2024 assumed the following form: change of 0.17% in capital goods (BK); 0.27% in intermediate goods (BI); and 1.34% in consumer goods (BC), being that the change noticed in durable consumer goods (BCD) was of 0.58%, whereas it was 1.49% in semi and non-durable consumer goods (BCND).
Know more about the IPP
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 a few 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 IPPare available at on Sidra. The next release of the IPP, related to October, will be on November 28.
