In January 2017, the prices of the general industry changed, on average, 0.35% when compared to the previous month, a lower figure than that of December/2016 (1.29%). Among the 24 activities of the mining and quarrying and manufacturing industries, ten presented positive price changes, against 19 of the previous month. The cumulative indicator in 12 months was 1.38%, against 1.71% in December 2016. In January of 2016, the index stayed at 0.68%.

The Producer Price Index (IPP) of the mining and quarrying industries and manufacturing industry measures the price evolution of products 'at the factory gate', without taxes or freights and comprises information divided in major economic categories, i. e., capital goods, intermediate goods and consumer goods (durable and semi- and non-durable). The complete publication of the IPP can be accessed here.

Producer Price Index, by Mining and Quarrying and Manufacturing Industries
(General Industry) and Sectors - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

In January 2017, the change of prices of 0.35% in relation to December produced the following results among the main economic categories: -0.19% in capital goods; 1.03% in intermediate goods; and -0.59% in consumer goods, when 0.69% was the recorded change in terms of durable consumer goods and -0.96% in semidurable and non-durable consumer goods.

The influence of major economic categories was -0.02 percentage poiunts for capital goods, 0.57 percentage points for intermediate goods, and -0.21 percentage points for consumer goods. In the case of consumer goods, -0.27 p.p. that resulted from the changes in prices of semi-durable and non-durable consumer goods, and the change by 0.06 percentage points in durable consumer goods.

Considering the cumulative index in 12 months, the change of prices in industry reached, in January, 1.38%, with the following changes: capital goods, -2.92% (-0.26 percentage points); intermediate goods, 0.65% (0.37 percentage points); and consumer goods, 3.68% (1.27 percentage points), when durable consumer goods accounted for a contribution of 0.24, and semi-durable and non-durable goods, of 1.04 percentage points.

Producer Price Index, by Mining and Quarrying and Manufacturing Industries (General Industry)
and Major Economic Categories - Last three months 

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

Ten of the 24 activities recorded rise of prices 

In January/2017, 10 of the 24 activities recorded positive change of prices, versus 19 in the previous month. The four biggest changes observed in January/2017 took place among the products included in the following industrial activities: oil refining and etanol products (5.54%), tobacco (-3.47%), basic metals (3.28%) and printing (3.22%).

In terms of influence, in comparison between Janaury/2017 and December/2016 (0.35%), the highlights were petroleum refining and etanol products (0.56 p.p), food products (-0.48 p.p.), basic metals (0.24 p.p.) and other chemicals (0.14 p.p.).

With regard to the cumulative index, the change of prices was 1.38%, versus 1.71% in December/2016. The four biggest change of prices occurred in mining and quarrying industry (60.34%), tobacco (-14.13%), other transportation equipmen (-13.87%) and printing (1.66%). In this indicator, the most influential sectors were were: mining and quarrying industry (1.42 p.p.), other chemical products (-1.19 p.p.), food products (0.94 p.p.) and basic metals (0.54 p.p.).

Mining and quarrying industry: in January 2017, the prices of this activity had positive change of  2.06%, in relation to December in the previous year. In terms of the cumulative index in 12 months, the prices of mining and quarrying industries changed positively by 60.34%, and was the main change observed in this comparison of general industry, with a contribution of 1.42 p.p. Except for “crude petroleum oil', all the products analyzed in this activity had positive changes in comparison with results of the previous month.

Food products: the prices of food products, from December 2016 to January 2017, had an average change of  -2.23%, the first negative result since August 2016 (-0.69%). As a consequence, the sector had the biggest influence, and accounted for -0.48 p.p. in the result of 0.35% of mining and quarrying and manufacturing industry. Regarding the cumulative index in 12 months, there was increase of 4.67%, the lowest since June 2015 (3.91%).

The four products (“resídue of soybean extraction”, “crystalized sugar”, “frozen poultry meat and giblets” and “cooled or refrigeratedd beef”), highlights in terms of influence in the month, accounted for -1.40 p.p. (-2.23%). Among these items, only “frozen poultry meat and giblets” does not feature among the biggest contributions, that is, is not among the most influential ones in the calculation of the month (having been replaced by “concentrated orange juice”).

In a scenario in which proces have been adjusted, as previously mentioned, it is worth mentioning that our curency, real, had appreciation versus the dólar currency, a little above 4.5%, a downward influence on exported products (the main four ones are in this case). Besides, a series of other factors also influenced this behavior, among which can be mentioned: the crop (in case of sugar and soybean products) and the retraction of demand (relevant in the case of beef).

Oil refining and etanol products: the average change of prices of the sector in January 2017 versus December 2016 was 5.54%, the biggest change among all the sectors covered by the survey. This behavior caused the sector to be the most influential in the result of mining and quarrying and manufacturing industr, accounting for 0.56 p.p. in 0.35%. It is also Worth mentioning that is the height of the series (which started in January 2010). In the cumulative index in 12 months, the prices were 3.57% higher, a positive result not seen since July 2016 (0.09%).

Among the most influential products in terms of monthly results is “diesel and other fuel oils”, those of main contributions to the calculation (approximately 53%), besides “naphthas” and “aviatyion kerosene”, in the group of oil products, and e'thyl alcohol ' (anidrous or hydrated)”. The four highlights accounted for 5.23 p.p. in a change of  5.4%.

Other chemicals: the chemical industry in the month of January had an average change of prices of 1.48% versus the December figure, which resulted in a cumulative result of of -11.15% in the last 12 months.  

The four highlights in terms of change in the month-on-month change were: 'styrene-butadiene rubber' and 'non-saturated propylene', with positive change of prices besides 'chlorine' and 'non-saturated polyester resin', with negative changes.

The four main products in terms of influence in the month/previous month comparison (“NPK-based manure or fertilizers'), non-saturated propene (proylene) não-saturado”, “polypropilene” and “styrene-butadiene rubber”) represented a net positive result of 1.32 p.p. in the change of 1.48% in the month, that is, the other 28 products accounted for a positive contribuition of 0.16 p.p.

Basic metals: a comparison of prices of the sector between December 2016 and January 2017 shows the cotinuity of reversal of decreases recorded in October and September, reaching an average positive change of prices, 3.28% (the second biggest change in manufacturing industry in the month) and, this way, the cumulative index in 12 months had a positive change of 7.62%.

Among the highlights, in terms of change versus December 2016, are: “cold carbon steel bobins, uncoated”, “carbonsteel bobins or plates”, “thick carbono steel plates, uncoated” and “tinplates”.

In relation to products which influenced the month-on-month results, we mention:  “hot and cold carbon steel bobins, uncoated” and “unwrought non-alloy aluminium”, “uncoated carbon steel bobins” e “carbon steel blocks,rods and plates” representing 1.99 p.p of the 3.28% of month-on-month change.