IPP
Industry prices down 0.48% in October influenced by food sector
December 05, 2025 09h00 AM | Last Updated: December 05, 2025 11h53 AM
Prices in the national industry fell 0.48% in October compared to September (-0.24%), the ninth consecutive negative rate after a series of 12 consecutive positive results between February 2024 and January 2025. The Producer Price Index (IPP) thus showed a 1.82% drop over 12 months, and the cumulative figure for the year was -4.33%. In October 2024, the monthly change was 0.97%. The data were released today (5) by IBGE.
The Producer Price Index (PPI) for Mining and Quarrying and Manufacturing Industries measures the "factory gate" prices of products, excluding taxes and freight, and covers the broad economic categories.
In October 2025, 11 of the 24 industrial activities surveyed showed negative price changes when compared to the previous month, mirroring the change in the index for the general industry. In September of this year, 12 activities had shown lower average prices compared to August. The four most significant changes were in other chemical products (-2.00%); perfumes, soaps and cleaning products (1.89%); basic metals (1.80%); and footwear and leather goods (-1.60%). The main influences came from food (-0.36 pp), other chemical products (-0.16 pp), basic metals (0.11 pp) and petroleum refining and biofuels (-0.09 pp).
Alexandre Brandão, manager of analysis and methodology, points out that the cumulative rate for the year up to this reference month is the second lowest ever recorded for an October since the beginning of the time series in 2014. “The food sector is the biggest influence on the result. Of the -4.33% change, -2.43 percentage points are explained by the movement of food prices. An important factor in this movement is the exchange rate: despite the depreciation of the real against the dollar from September to October (0.3%), there was an appreciation of the real of 11.7% in the first 10 months of the year. In addition, it is a harvest period for products that are important raw materials: sugarcane, soybeans, and rice. The other three sectors that most influenced the result for the year also had a negative impact on prices: Mining and Quarrying industries (movement of international prices of crude oil and iron ore), basic metals (increase in world supply), and petroleum refining (fall in prices of derivatives consistent with the decline in the petroleum price in the global market),” he explains.
From September to October 2025, the food sector, the biggest influence (-0.36 pp) on the industry's negative performance, recorded its sixth consecutive month with falling prices at the factory gate, -1.47% compared to the previous month.
Mr. Brandão highlights that the price of VHP sugar is driving this decline, in line with the sugarcane harvest season. “The prices of milk and fresh beef also negatively impact the comparison between October and September; the former due to higher milk collection in dairy basins, therefore, lower raw material acquisition costs. In the case of beef, the companies' justifications ranged from lower demand to the application of occasional discounts,” Mr. Brandão points out.
Prices of other chemical products fell 2.00% compared to September, the most intense change recorded in the IPP. The sector has the third largest weight in the IPP calculation (7.92%) and its influence in October was the second most intense among the activities investigated in the survey.
Third in the ranking of greatest influences on the IPP in October, basic metals (0.11 pp) registered a 1.80% increase from September to October, reaching its second consecutive positive result after a series of declines between January and August.
From the perspective of the broad economic categories, the price change observed from September to October 2025 was reflected as follows: 0.19% change in capital goods (BK); -0.65% in intermediate goods (BI); and -0.38% in consumer goods (BC), with the change observed in durable consumer goods (BCD) being 0.06%, while in semi-durable and non-durable consumer goods (BCND) it was -0.46%.
The main influence came from intermediate goods (-0.35 pp), followed by consumer goods (-0.14 pp), with 0.00 pp for durable consumer goods and -0.15 pp for semi-durable and non-durable consumer goods. Capital goods contributed with 0.01 pp.
Learn more about the IPP
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 public and private decision-makers.
The survey investigates, in just over 2,100 companies, the prices received by the producer, free of taxes, tariffs and freight, defined according to the most common commercial practices. Approximately 6,000 prices are collected monthly. The complete IPP tables are available on Sidra. The next IPP release, for November, will be on January 16th.
