In September 2015, prices in industry changed 3.03% over the previous month – a higher index than August's (0.96%). This is the highest result in the series, which started in January 2014. The cumulative indicator in the year was 7.80% in September against 4.63% in August. The cumulative indicator in 12 months was 9.44%, against 7.27% in August. Among the 24 activities of the mining and quarrying and manufacturing industries, 22 presented positive price changes.

The Producer Price Index (IPP) of the Mining and Quarrying and Manufacturing Industries measures the development of “factory gate” prices, excluded taxes or freight, and provides information by major economic categories, i. e., capital goods, intermediate goods and consumer goods (durable e semi-and non-durable). The complete publication of the IPP can be accessed here.

Among the major economic categories, in September, price changes of 3.03% over August occurred as follows: 2.92%, in capital goods; 3.73%, in intermediate goods; and 1.91%, in consumer goods: 0.67% was the change seen in durable consumer goods and 2.30%, in semi-and non-durable consumer goods. The influence among categories were: 0.26 p.p. in capital goods, 2.12 p.p. in intermediate goods and 0.65 p.p. in consumer goods. In the case of consumer goods, 0.60 p.p. was due to price changes observed in semi-and non-durable consumer goods and 0.06 p.p., in durable consumer goods.

As to the cumulative index over the year, price changes of industry have reached, up to September, a 7.80% change: 12.49% in capital goods (with influence of 1.05 p.p.), 8.45% in intermediate goods (4.81 p.p.) and 5.59% in consumer goods (1.93 p.p.). In this last case, the increase had an influence of 0.46 p.p. exerted by “durable consumer goods” and 1.47 p.p., by “semi-and non-durable consumer goods”.

In the cumulative index over 12 months, the price change of industry reached, in September, 9.44%, with the following changes: capital goods, 16.83% (1.39 p.p.) intermediate goods, 9.48% (5.43 p.p.) and consumer goods, 7.61% (2.62 p.p.). The influence of 'durable consumer goods' was of 0.60 and of 'semi-and non-durable consumer goods' was of 2.03 p.p.

22 of the 24 activities registered positive price changes.

In September/2015, 22 of the 24 activities registered positive price changes, against 20 in the previous month. The four major changes observed in September/2015 were: Mining and quarrying industries (12.50%), tobacco (8.38%), other transportation equipment (7.95%) and food products (5.48%). In terms of influence, the highlights were food products (1.04 p.p.), mining and quarrying industries (0.37 p.p.), other chemicals (0.37 p.p.) and other transportation equipment (0.20 p.p.).

The cumulative indicator of the year reached 7.80%, against 4.63% in August/2015. Among the activities which, in September/2015, had the highest percent changes, the highlights were: other transportation equipment (34.41%), tobacco (32.94%), pulp and paper (23.10%) and wood (18.01%). The sectors to exert the greatest influence were: food products (1.93 p.p.), other chemical products (1.32 p.p.), paper and pulp (0.78 p.p.) and other transportation equipment (0.73 p.p.).

Considering the cumulative index in 12 months, the change of prices was 9.44%, against 7.27% in August 2015. The four major price changes occurred in other transportation equipment (45.33%), tobacco (44.67%), paper and pulp (30.35%) and wood (25.91%). The sectors to exert the greatest influence (table 3) were: food products (2.48 p.p.), other chemical products (1.43 p.p.), paper and pulp (0.99 p.p.) and other transportation equipment (0.90 p.p.).

Mining and quarrying: the prices of mining and quarrying industries changed by 12.50%, a result which almost offsets, for example, the negative change of January, -12.73%. All in all, September's result inverted the cumulative index of the year, which went from -6.50%, in August, to 5.19%. In the comparison with September 2014, the change is also negative, - 13.28%, but it had been -42.06% in January and -21.60% in August.

All the products surveyed in this activity had a positive change in September, led by 'iron ores' and 'crude petroleum oil'. These products, which weight more in the calculation of the sector, are still participating with a negative contribution in the cumulative index of 12 months.

Food products: the prices of the sector increased, when compared to August's, by 5.48% -  the highest result in the series, which is only paired by October’s 2010 (5.30%). It is worth mentioning that September's result made the influence of food products go up to 1.04 p.p. - the highest of all, followed by mining and quarrying industries, 0.37 p.p. - in the 3.03% change for the total of the mining and quarrying industries and manufacturing industries. With September's result, the cumulative index in the year 2015 went from 4.43%, in August, to 10.15%, the highest result since December 2012 (14.86%). December 2012 reflects the annual change, but that year, in September, the cumulative price changes was 15.21%. In the comparison between September 2015/September 2014, current prices are 13.15% higher, the highest result in January de 2013 (13.23%).

Among the highlights, two of them ('residue of soybean extraction' and 'fresh or cooled beef') appear both as the greatest change and the greatest influence in the monthly result. The major influences also include 'crystallized sugar' and 'concentrated orange juice'. These four items accounted for 3.18 p.p. (by 5.48%). The current result reflects the fact that the exchange rate, in September, depreciated by more than 11.0% in comparison with the dollar (similarly to what happened in March 2015), with a direct influence on several products.

In the case of 'crystallized sugar', besides the incentives to exportation, the supply has been lower due to the fact that the majority of the sugarcane production is dedicated to ethanol. In the case of soybean byproducts — 'residue of soybean extraction' is one of them —, besides exchange rates, a greater demand by part of the industries (particularly the ones producing animal feed), at the initial stage of soybean cultivation, and, therefore, when the supply is low, is an additional factor which explains the observed change. At last, in the case of 'fresh or cooled beef', one should consider the major production flow to foreign countries, implying the decrease of the domestic demand, as well as the impact, via cost, of the lower availability of animals to be slaughtered.

Paper and pulp: in the September-August/2015 comparison, the prices of the sector grew 5.25%, representing 0.20 p.p. of the 2.66% fluctuation of the index of the Manufacturing Industry. In the same period last year, the monthly increase was 1.67%. This year, the activity has been presenting price increase. The only exception was April, -1.06%, a result that exceeded the high of 4.94%, occurred in a moment of high exchange depreciation in relation to the dollar, almost 11.0%, a situation that in September occurred again. Thus, the cumulative indicator of 2015, including the month of September, is 23.10%.

Four products were responsible for generating a net influence of 5.25 p.p., between August and September. Of this group of products, three had a positive impact on prices: 'pulp', 'uncoated paper of inorganic matter for writing, printing or other graphic purposes' and “uncoated kraft paper for packaging', whereas the product 'notebooks' had a negative impact.

Other chemical products: although in the beginning of the year there was a price drop in the first two months, which also happened in May, the sector has been recovering since then and presenting positive changes; in September, the rate was 3.41%. As a result the cumulative index year reached 12.70%. This was the highest rate for this period since the beginning of the IPP series, and the change in the last twelve months was 13.70%, the highest result for this index since February/2013 (14.66%).

The products that stood out in the price changes in the month were 'caustic soda or caustic potash', 'titanium dioxide', 'phenol (hydroxibenzene) and its salts'  and  'styrene-butadiene rubber' - all of them with positive changes. In relation to the influence, 'manure and NPK fertilizers', 'ethylene (non-saturated ethane)” and 'polypropylene (PP)' were the highlights, with a positive result, in the three surveyed indexes.

Other Transportation Equipment: in the September-August/2015 comparison, the prices of the sector grew 7.95%, representing 0.20 p.p. of the fluctuation of the index of the Manufacturing Industry (2.66%). In the same period last year, the monthly increase was 1.56%.

This year the activity has presented an almost continuous price increase trend, so that the cumulative index of 2015, including September, is 34.41%. The only exception occurred in April (-1.74%), right after the month of exchange depreciation in relation to the dollar ( around 11.0%, as it is now in September). The price increase trend seen was mostly due to the depreciation of the domestic currency occurred in the last months.