As to the cumulative index in the year – current month versus December last year –, the industrial prices changed -0.08% until August, being -1.42% due to capital goods (influencing -0.12 p.p.), -1.20% to intermediate goods (-0.68 p.p.) and 2.09% to consumer goods (0.72 p.p.). In this last case, the increase was influenced by durable consumer goods (0.15 p.p.) and by semi and non-durable consumer goods (0.57 p.p.).

In the annual rate (June 2016/June 2015), the price change in industry reached 5.67% in June, with the following changes: capital goods, 5.04% (0.44 p.p.) intermediate goods, 3.97% (2.26 p.p.) and consumer goods, 8.65% (2.97 p.p.). The influence of durable consumer goods was of 0.29 and of semi-and non-durable consumer goods was of 2.68 p.p.

11 of 24 activities register positive price changes

Among the 24 activities of the mining and manufacturing industries, 11 of them recorded positive price changes, against ten in the previous month. Some sectors were highlighted below:

Mining and quarrying industries: the prices of this sector posted a negative change in June
 (-1.72%) in relation to that reported in the previous month. This negative change interrupted a sequence of three months of rising prices. In terms of influence, this was the second biggest negative influence (-0.05 p.p.) on the monthly indicator of industry. The cumulative index in the year retreated from 14.58% in May to 12.62% in June. Nonetheless, it was the highest cumulative change among all the activities surveyed. The price change of this sector in 2016 registered the second biggest positive influence (0.35 p.p.) on industry. The comparison of the current month with the same month last year recorded a positive change of 1.55%. The negative change of the prices in this activity was mainly due to the recent drop of the international prices of 'iron ore', after a brief recovery in previous months.

Food products: the prices of this sector recorded a positive change of 2.71% between May and June, slightly lower than that reported between April and May (2.84%). As a result, the cumulative rate jumped from 3.09% (May) to 5.89% (June). In the comparison between June 2016 and June 2015, the current prices were 19.63% higher than those a year ago, representing the highest change for June in the time series started in December 2010. Milk stood out in the June/May comparison. Among the four biggest changes, three products derived from milk in natura: 'sterilized milk/UHT/long life milk', 'powdered milk, milk in lumps and granules' and 'pasteurized milk, including skimmed'. Of them, 'sterilized milk/UHT/long life milk' stood out among the biggest influences, followed by 'residue of soybean oil extraction' – the fourth product among the biggest changes –, 'crystallized sugar' and 'husked milled rice, parboiled or not'. The influence of these four products was of 2.66 p.p. in the change of 2.71%, which meant that the influence of the other 39 products selected for this sector was of 0.05 p.p. It should be pointed out that the change reported in June took the food sector as the highest positive change of prices among all the sectors of the mining and manufacturing industries, as well as the biggest influence on the three indicators used in this analysis (0.56 p.p. in 0.52% under the perspective of the M/M-1 indicator; 1.18 p.p. in -0.08% in the cumulative index; and 3.68 p.p. in 5.67% in the M/M-12 indicator).

Oil refining and ethanol products: after six negative results in the M/M-1 comparison, the prices of this sector changed 1.61% in June. Nevertheless, a negative cumulative change was registered up to June: -5.02%, against -6.55% in May. Under the M/M-12 perspective, the prices were 1.27% higher in June 2016 in relation to those in June 2015. Among the comparisons between a 2016 month and the same month in 2015, the June figure was the second lowest (it had been 0.09% in May). On the one hand, the price changes recorded in this sector were explained by the increase in the price of 'ethyl alcohol (anhydrous or hydrated)', as its off-season matched with high international prices of sugar. On the other hand, they were explained by the increase in the prices of products with lower weights in the computation of the sector´s index ('naphtha' – the fourth highest weight –, 'aviation kerosene' and 'basic lubricants').

Other chemicals: the chemical industry posted a positive price change of 0.25% in June over May, maintaining a price rise for two consecutive months, though not sufficient to reverse the cumulative price change in the year of -7.90% and of -3.98%, in the last 12 months. Basic and intermediate petrochemicals for plasticizers, resins and fibers were associated with international prices, costs of electricity, acquisition of imported raw materials, dollar value – cumulative depreciation of real against the American currency of 11.5% in the year – and naphtha prices, whose prices cumulatively dropped in the year and between May 2016 and May 2015, which also partly explained the reduction in the prices of this sector in these periods.                                                              

Rubber and plastic products: this sector stood out in this analysis as the change in the M/M-12 indicator took it to the fourth biggest influence (0.23 p.p., in 5.67%) among all the activities of the mining and manufacturing industries. Comparing June 2016 with June 2015, the prices of this sector changed, on average, 6.80%. Although not a highlight, the price change between May and June was of 0.02%, causing a cumulative average increase of 0.27%.

Motor vehicles: Compared with May, the prices in this sector changed -0.01% in June, taking the cumulative rate to 1.36%. In spite of being one of the sectors with the highest weight in the mining and manufacturing industries, motor vehicles stood out in this analysis as it was the second biggest influence on the M/M-12 indicator (0.47 p.p., in 3.68%). This influence was due to the change of 4.30% registered between June 2015 and June 2016, mostly explained by the increases reported in September 2015 (1.14%) and January 2016 (2.13%, the highest in the time series). Since it was the product with the highest weight, the price change of 'flex-fuel, gasoline or ethanol passenger car with any engine power output' was the major highlight in terms of influence on the M/M-12 indicator.

Other transportation equipment: The prices of other transportation equipment recorded a negative change in June (-2.29%) in relation to the previous month. As a result, the monthly indicator completed five consecutive years of negative changes. The cumulative index in the year stayed at -7.12%. Considering the last 12 months (M/M-12), the indicator stayed at 9.01%. The monthly change in the prices of this sector exerted the highest negative influence (-0.06 p.p.) on the overall industry. 'Airplanes weighting more than 2,000 kg' stood out in terms of the monthly indicator.