Producer Price Index (IPP) changes 0.90% in May
June 28, 2016 11h43 AM | Last Updated: January 19, 2018 06h21 PM
|
MAY 2016
|
0.90%
|
|
April 2016
|
-0.34%
|
|
May 2015
|
0.00%
|
|
Cumulative in 2016
|
-0.61%
|
|
Cumulative in 12 months
|
5.61%
|
The Producer Price Index – IPP changed 0.90% in May, above the rate of -0.34% registered in the previous month. This was the first positive figure after three negative results in a row. As a result, the cumulative index in the year reached -0.61% against -1.49% in April. The cumulative rate in 12 months hit 5.61%, above the index of 4.67% in April. The IPP measures the evolution of “factory gate” prices, excluded taxes or freight, for 23 manufacturing industry sectors. The complete publication of the survey can be accessed here.
Table 1
Producer Price Indexes, according to Mining and Quarrying and Manufacturing Industries (Overall Industry) and Sections - Last three months
| Overall Industry and Sections | Change (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| M/M-1 | Cumulative in the Year | M/M-12 | |||||||
|
MAR/16
|
APR/16
|
MAY/16
|
MAR/16
|
APR/16
|
MAY/16
|
MAR/16
|
APR/16
|
MAY/16
|
|
|
Overall Industry
|
-1.20
|
-0.34
|
0.90
|
-1.15
|
-1.49
|
-0.61
|
5.26
|
4.67
|
5.61
|
|
B - Mining and Quarrying Industries
|
6.56
|
13.35
|
11.37
|
-9.23
|
2.88
|
14.58
|
-20.17
|
-6.57
|
7.86
|
|
C - Manufacturing Industries
|
-1.38
|
-0.70
|
0.58
|
-0.92
|
-1.62
|
-1.04
|
6.14
|
5.04
|
5.53
|
E
The industrial prices changed, on average, 0.90% in May when compared with April 2016, above the figure registered in the April 2016-March 2016 comparison (-0.34%). In May 2016, 11 out of the 24 activities registered positive price changes. The four biggest changes recorded in May 2016 were among the products related to mining and quarrying industries (11.37%), pharmaceuticals (2.99%), food products (2.82%) and printing (2.82%). In terms of influence, the highlights were food products (0.57 p.p.), mining and quarrying industries (0.33 p.p.), oil refining and ethanol products (-0.13 p.p.) and other chemicals (0.09 p.p.).
The cumulative indicator in the year reached -0.61%, against -1.49% in April. Among the activities that posted the highest percentage changes in this indicator, the highlights were: mining and quarrying industries (14.58%), other chemicals (-8,19%),), pharmaceuticals (6.90%) and printing (6.73%). The sectors that exerted the greatest influence were other chemical products (-0.88 p.p.), oil refining and ethanol products (-0.68 p.p.), food products (0.62 p.p.), and mining and quarrying industries (0.40 p.p.).
In the comparison between May 2016 and May 2015 – cumulative in the year – , the price change hit 5.61%, against 4.67% in April 2016. The four biggest changes were registered in food products (16.61%), tobacco (14.24%), toiletries, soaps and cleaning products (13.62%) and printing (12.99%). The sectors that mostly influenced this indicator were: food products (3.12 p.p.), motor vehicles (0.44 p.p.), basic metals (-0.31 p.p.) and other transportation equipment (0.30 p.p.).
Among the major economic categories, capital goods changed -0.38%; intermediate goods, 1.19%; and consumer goods, 0.75%, being 0.49% in durable consumer goods and 0.83% in semi and non-durable consumer goods. In terms of influence, capital goods contributed with -0.03 p.p., intermediate goods with 0.66 p.p. and consumer goods with 0.27 p.p. In the case of consumer goods, 0.22 p.p. was due to price changes observed in semi and non-durable consumer goods.
Concerning the cumulative index in the year, the changes were of -0.72% in capital goods (influencing -0.06 p.p.), -1.93% in intermediate goods (-1.10 p.p.) and 1.59% in consumer goods (0.55 p.p.). In this last case, the increase was influenced by durable consumer goods (0.14 p.p.) and by semi and non-durable consumer goods (0.41 p.p.).
In the cumulative rate in 12 months, the change in capital goods was of 6.93% (0.60 p.p.); intermediate goods, 4.03% (2.29 p.p.); and consumer goods, 7.87% (2.72 p.p.), being the influence of durable consumer goods of 0.27 p.p. and that of semi and non-durable consumer goods, 2.45 p.p.(tables 4 and 5; figure 5).
Table 4
Producer Price Indexes, according to Mining and Quarrying and Manufacturing Industries (Overall Industry) and Major Economic Categories - Last three months
| Overall Industry and Sections | Change (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| M/M-1 | Cumulative in the Year | M/M-12 | |||||||
|
MAR/16
|
APR/16
|
MAY/16
|
MAR/16
|
APR/16
|
MAY/16
|
MAR/16
|
APR/16
|
MAY/16
|
|
|
Overall Industry
|
-1.20
|
-0.34
|
0.90
|
-1.15
|
-1.49
|
-0.61
|
5.26
|
4.67
|
5.61
|
|
Vapital Goods (BK)
|
-0.98
|
-1.31
|
-0.38
|
0.98
|
-0.34
|
-0.72
|
8.13
|
7.73
|
6.93
|
|
Intermediate Goods (BI)
|
-1.80
|
-0.09
|
1.19
|
-3.00
|
-3.08
|
-1.93
|
3.10
|
2.36
|
4.03
|
|
Consumer Goods (BC)
|
-0.29
|
-0.50
|
0.75
|
1.34
|
0.83
|
1.59
|
8.09
|
7.73
|
7.87
|
|
Durable consumer goods (BCD)
|
-0.07
|
-0.62
|
0.49
|
1.87
|
1.24
|
1.74
|
4.61
|
3.57
|
3.24
|
|
Semi and non-durable consumer goods (BCND)
|
-0.35
|
-0.46
|
0.83
|
1.18
|
0.71
|
1.54
|
9.21
|
9.07
|
9.36
|
11 of 24 activities surveyed register price rises
The industrial prices changed, on average, 0.90% in May when compared with April 2016, above the figure registered in the April 2016-March 2016 comparison (-0.34%). In May 2016, 11 out of the 24 activities registered positive price changes.
Mining and quarrying industries: the prices of the mining and quarrying industries increased for the third consecutive month, having changed 11.37% in May. The positive monthly change in prices exerted the second greatest influence (0.33 p.p.) on the indicator for the overall industry, staying just behind food products. Considering the price acceleration from April onwards, this sector recorded a cumulative positive change of 14.58% in the year. Compared with the same month last year – cumulative in 12 months –, the change was of 7.86%. As noticed in April, the price rise in the mining and quarrying industries was mainly influenced by the international prices of iron ore. 'Crude petroleum oil' prices also rose in May, due to the national policy adopted in this sector.
Food products: the prices in this sector changed 2.82% in May, posting the highest figure since September 2015 (5.47%, the highest positive change in the time series). Considering this result, the cumulative index in the year reached 3.08% and, compared with May 2015, it registered a positive change of 16.61%, the highest in the year. Having analyzed the highlight products, two of them – 'sterilized milk/UHT/long life milk', in an off-season period, and 'residue of soybean oil extraction', influenced by international prices – appeared in the list of highest changes and in the list of greatest influences. In the case of changes, the increase in the prices of 'corn food' and 'fresh or chilled pork' were in line with the increase of corn on its own. In the case of the highlights in terms of influence, the four products accounted for 2.29 p.p. (in 2.82%). The price increase of 'refined sugar from sugarcane' was coupled with the increase in the international prices, which also happened with soybean products ('residue of soybean oil extraction'), worsened in this case by climate problems that influenced the supply from Argentina. The price increase of 'husked milled rice, parboiled or not' was justified by the low availability of this product. The price change in this sector was the third highest either among the mining and quarrying or the manufacturing industries and, on its turn, was the greatest influence (0.57 p.p. in 0.90%). In the same line, this sector stood out in every index computed, except for the cumulative in the year.
Oil refining and ethanol products: the prices in this sector changed -1.28% in May, registering the sixth negative figure in a row. As a result, the time series recorded a cumulative change of -6.53% in 2016, the highest negative figure in the time series, which also reported a negative result in May 2015. When compared with the prices in the same month in 2015, the current prices are 0.09% higher than those. The influence of the products 'diesel fuel and other fuel oils', 'ethyl alcohol (anhydrous or hydrated)', 'aviation kerosene' and 'naphtha' was of -1.27 p.p. (in -1.28%), and only the price change of 'naphtha' was positive.
Other chemicals: the chemical industry changed 0.88% in relation to April, reversing three consecutive price drops in this type of comparison, which produced a cumulative change in the year of -8.19% and of -0.04% in the last 12 months. The main changes – all of them positive, except for 'styrene' – were registered in products which were not those with higher weights, which did not happen among those with greater influence – which only 'HDPE' was not included. They were: 'NPK-based manure and fertilizers', 'unsaturated ethylene(ethene)' and 'herbicides for agricultural use', the last one recording a negative figure in May. Ammonia is the main input for nitrogen-based fertilizers and the prices of this product had been dropping over the last months, being one of the highlights in the cumulative change in the year, which partly explained the figures of 'NPK-based manure and fertilizers', as well as the cumulative rate in the year and in 12 months. The four products that mostly influenced the month-over-month comparison accounted for 0.66 p.p. in the result of 0.88%. In other words, the other 28 products contributed with 0.22 p.p.
Basic metals: this sector changed 1.00% in May, breaking a series of three drops in a row. As a result, this sector recorded a cumulative rise of 0.08% in the year and, in the last 12 months, a drop of -4.00%. Three out of the four products with higher weights were among those that mostly influenced the month-over-month figures: 'carbon steel ingots, blocks, rods or plates', the highest positive change among them, 'unwrought non-alloy aluminum' and 'uncoated hot-rolled steel carbon coil'. The only product not belonging to the group of those with higher weights was 'copper and copper alloy bars, profiles and rebars', which also stood out among the the highest negative changes in May, reflecting the effects of the London Metal Exchange on copper and the devaluation of the dollar against the real. Considering the main influences on the cumulative index in the year and in 12 months, only two products were in common: 'stainless steel coil or sheet, including strips', figuring negatively in both indexes, and 'uncoated cold-rolled steel carbon coil', posting a positive figure in the cumulative in the year and a negative one in 12 months. 'Unwrought non-alloy aluminum' and 'carbon steel ingots, blocks, rods or plates' stood out in the 12-month results, the former negatively and the latter, positively.
Motor vehicles: the average price change in this sector was of 0.47% in May, registering the first positive figure after three consecutive months. As a result, this sector recorded a cumulative change of 1.40%. A rise of 4.07% was recorded when comparing with May 2015, the lowest rate in this type of comparison in the year. Three products – 'headlights for motor vehicles', 'injection pumps for motor vehicles' and 'diesel and semi-diesel engines for buses and trucks' – stood out both in terms of change and influence. The fourth product in terms of influence was 'flex-fuel, gasoline or ethanol passenger car with any engine power output', the highest weight in the computation (about 50%). The four products influenced 0.38 p.p., though only one influenced negatively ('headlights for motor vehicles').
Other transportation equipment: the prices in this sector dropped 0.68% in relation to April. As a result, this activity completed four consecutive months of negative changes, recording a cumulative drop of 4.95% in the year. Compared with the same month a year ago, it posted a positive change of 12.80%. The cumulative indicator in 12 months registered, in absolute terms, the fourth greatest influence (0.30 p.p.) on the overall industry indicator.
