In September, the prices of the General Industry changed on average 0.47% in relation to August, above what was seen between August and July (-0.25%). In the year, the IPP fell (-0.46%) and, in 12 months, the change was of 0.52%. Among the 24 activities surveyed, 14 recorded a positive change of prices, against11 in the previous month. The Producer Price Index (IPP) measures the evolution of 'factory gate' prices, excluded taxes and freight.

The complete publication of the IPP can be accessed here.

In September/2016, in relation to August/2016, the prices of 14 in 24 activities increased, against 11 of the previous month. The four main changes occurred among the following activities of industry: Mining and quarrying industries (8.19%), basic metals (-1.24%), pharmaceuticals (-1.07%) and  food products(0.94%). The major influences came from mining and quarrying industries (0.24 p.p.), food products (0.20p.p.), basic metals (-0.09 p.p.) and other chemicals (0.07 p.p.).

In September/2016, the cumulative index of the year reached -0.46%, against -0.93% in August/2016. The activities with the biggest changes in this indicator were: other chemicals (-12.47%), mining and quarrying industries (12.16%), other transportation equipment (-10.22%) and tobacco (-10.09%). The most influential sectors were food products (1.60 p.p.), other chemicals (-1.33 p.p.), petroleum refining and ethanol products (- 0.59 p.p.) and mining and quarrying industries  (-0.34 p.p.).

The cumulative indicator in 12 months was 0.52%, against 3.03% in August/2016. The four biggest price changes were those in printing (15.10%), other chemicals (-12.95%), toiletries, soaps and cleaning preparations (12.56%) and food products (12.07%). The sectors that exerted the greatest influence werefood products (2.35 p.p.), other chemicals (-1.41 p.p.), pulp and paper (-0.34 p.p.) and motor vehicles(0.32 p.p.).

In September 2016, the price change over August among the Major Economic Categories was (table):0.93% in capital goods; 0.62% in intermediate goods; and 0.13% in consumer goods, of which -0.15% were seen in durable consumer goods and 0.22% in semi- and non-durable consumer goods.

The influence of the Major Economic Categories on the industry overall (0.47%) was: capital goods (0.08p.p.); intermediate goods (0.35 p.p.) and consumer goods (0.05 p.p.). In the case of consumer goods, 0.06p.p. came from semi and non-durable consumer goods and -0.01 p.p. from the prices of durable consumer goods.

In the cumulative index of the year, the changes were: -2.08% in capital goods (with an influence of -0.18p.p.), -2.10% in intermediate goods (-1.19 p.p.) and 2.63% in consumer goods (0.91 p.p.). In the latter case, the increase was influenced on 0.21 p.p. by durable consumer goods and on 0.70 p.p., by the semi-durable and non-durable consumer goods.

In the cumulative index in the 12 months, the changes were: capital goods, -2.09% (-0.18 p.p.); intermediate goods, -2.21% (-1.26 p.p.); and consumer goods, 5.80% (1.96 p.p.), of which the influence of durable consumer goods was 0.26 p.p. and of semi-and non-durable consumer goods, 1.71 p.p.

The sectors that were among the four main highlights as to the biggest price changes or greatest influence inSeptember 2016 are presented as follows, in the three types of comparison: monthly, cumulative index over the year and cumulative index in the 12 months.

Mining and quarrying industries: in September, the prices of the activity increased 8.19%. It was the second consecutive high in the month. The cumulative index over the year went from 3.67%, in August, to 12.16%, in September, and this was the greatest positive cumulative change in the year for the set of industrial activities. In relation to September 2015, the prices fell (-3.33%).

The prices of this activity exerted the main influence on the monthly index (0.24 p.p.) and the second main positive influence on the cumulative index over the year (0.34 p.p.) in the set of the mining and quarrying and manufacturing industries.

The cumulative high in the prices of the mining and quarrying industries in 2016 comes from the recovery of the Chinese demand for basic metals and also from the recovery of iron ore prices along the year. The prices of “Crude petroleum oil” also influenced the result positively.

Food products: in September, the prices of the sector increased 0.94%, whereas there was a fall in August (-0.69%). September's high was smaller than the ones seen between May and July (all of them above 1.00%). The cumulative index of the year was 8.01%, the highest of 2016. In September 2015, the rate was 10.14%. In that month, the real had depreciated by 11.0% against the dollar, whereas in September/16 the devaluation was of 1.5%. In relation to the same month of 2015, the price rose 12.07% in September, 20.20% in July and 17.10% in August.

The sector had the second greatest influence in the month (0.20 p.p. in 0.47%) and the highest in the cumulative index in the year (1.60 p.p. in -0.46%) and in 12 months (2.35 p.p. in 0.52%).

Milk collection coming back to normal, in the dairy farms, and the concentration of the demand in response to the price increase in the most severe period of droughts explain the fall of milk derivatives in September. The soybeans off season can partially explain the increase seen in 'soybeans extraction residues'. The scarcity of cattle for slaughter affected the price of “fresh or cool beef”. Finally, a reduced domestic supply and an increasing demand, including foreign markets’, explain the increase of “frozen poultry and giblets” in September.

Paper and pulp: the sector had, in September, the eighth consecutive fall (-0.36%) over the previous month. Since December 2015, just January's result was positive (2.28%). This sector recorded a cumulative fall of -7.24% in 2016 and of -8.76% in the last 12 months.

The four products that most influenced the change of the IPP of the sector in September were: 'toilet paper', 'pulp', 'notebooks' and 'writing, printing and other graphic purpose paper, uncoated with inorganic matter'. These four products were responsible for -0.47 percentage points in the sector's change of -0.36%. Of the price changes seen in these products, just 'pulp' was positive, even though there was a slight currency depreciation in September (1.5%). This high is, in some cases, due to the delivery of products previously traded.

Oil refining and ethanol products: in September, the sector recorded a price change of -0.16%, after having had -0.75% in August, in a year when just two monthly rates were positive (June, 1.61%; and July, 0.25%). With September's result, the sector accumulated a change of-5.66%. September prices in 2016 were on average 1.54% lower than those of the same month in 2015. This rate is the lowest in the series, which has as a highlight the result of -3.22%, of March 2015, when, for example, opposed to September this year, there was a drop of prices in 'motor gasoline' - the second product in terms of weight in the calculation of the sector (nearly 15.0%).

In terms of influence, the sector had a highlight in the calculation of the cumulative index of the year. From this perspective, it was the second biggest influence (in module) on the total of mining and quarrying industries and transformation industries (-0.59 p.p. in -0.46%).

Among the products of greater influence just “ethyl alcohol (anhydrous or hydrated)” recorded a positive change. The other, all belonging to oil refining, pushed the index down, especially “naphthas”. The four products (besides the ones already mentioned, “aviation kerosene” and “basic lubricants”) recorded a month-over-month influence of -0.18 p.p. in -0.16%.

The increase of “ethyl alcohol (anhydrous or hydrated)”, was related to a smaller supply influenced by a bigger production of sugar (stimulated by the foreign demand).

Other chemicals: the chemical industry had in September a positive change of 0.76% in relation to August, offsetting the decreases of the two previous months. The cumulative index of the year is negative (-12.47%) and shows the most intense change among all activities. In relation to the same month last year, the sector's prices fell (-12.95%), showing the second most intense change and the biggest reduction of prices in the survey. These drops are due to the international market of oil derivatives, especially naphthas.

Among the main changes in the month, none occurred in the products with the biggest weight in the calculation. The same does not go to those of the greatest influence, since two of the four highlights are in this category. The products “manure or NPK fertilizer”, “LDPE” and “propane (propylene), unsaturated” registered positive results, as opposed to “ethylene (ethane) , unsaturated”.

The four items of greatest influence over the change in the month accounted for 0.93 p.p. in the 0.76% result. The other 28 products contributed negatively.

Basic metals: dropped (-1.24%) in relation to August, the sharpest among the activities surveyed, breaking the series of four consecutive increases in the previous months. The sector recorded a cumulative rise of 2.01% in the year and of 0.05% in the last 12 months.

Among the products with the greatest influence in the month, two are among the four ones with the highest weight in the activity: “carbon steel ingots, blocks, billets and plates”, with the highest negative influence among all, and “unwrought non-alloy aluminum” with a positive influence and reflecting partially the advance of 1.5% of the dollar over the real in the month. The other highlights are 'stainless steel coil or sheet, including strips', with a positive change and “uncoated thick steel carbon plates', with a negative change.

Among the 22 selected products for this survey, the four items with the greatest influences in the month accounted for -1.30 p.p. of the monthly change (-1.24%). The other 18 products had an influence of 0.06 p.p.

The product 'uncoated cold-rolled steel carbon coils' stood out in the cumulative index over the year and 'carbon steel ingots, blocks, billets and plates', in the cumulative index in 12 months. Both with positive results.

Motor Vehicles: in September, the average change observed in motor vehicles was of 0.58%. The cumulative index in the year reached 2.40%. In September 2015, the cumulative indicator was 5.69%. The cumulative index in 12 months (3.00%) was the lowest since July 2014 (2.88%).

Besides being one of the sectors of highest weight in the overall indicator, the activity motor vehicles was the fourth greatest (in module) influence on the cumulative index over the 12 months (0.32 p.p. in 0.52%).

Among the products with the highest influence in the month, just 'flex-fuel, gasoline or ethanol passenger car with any engine power output' had a negative impact, mostly due to the fact that some assemblers had promotional prices.