In July 2016, the prices of the overall industry changed, on average, -0.56% when compared to the previous month, below June's figure (0.50%). Among the 24 activities of the mining and quarrying and manufacturing industries, eight recorded positive price changes, against nine in the previous month. The cumulative indicator of the year was -0.67% in July, against -0.11% in June. The cumulative index in 12 months was 4.30%, against 5.65% in June.

The Producer Price Index (IPP) of the mining and quarrying industries and  manufacturing industries measures the evolution of 'factory gate' prices, excluded taxes or freight, and collects information by 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.

In July 2016, the price change of -0.56% over June influenced the major economic categories as follows: -1.48% on capital goods; -1.00% on intermediate goods; and 0.35% on consumer goods, of which 0.01% was the change observed in durable consumer goods and 0.46% in semi-durable and non-durable consumer goods.

The influence of the major economic categories was of -0.13 percentage points of capital goods, -0.56 p.p. of intermediate goods and 0.12 p.p. of consumer goods. In the case of consumer goods, the 0.12 p.p. was due to price changes in semi-durable and non-durable goods and 0.00 p.p. in durable consumer goods.

In the cumulative perspective in the year, the industry price changes accumulated until April a change of -0.67%, of which -2.89% corresponds to capital goods (with the influence of -0.25 p.p.), - 2.20%, to intermediate goods (-1.25 p.p.) and 2.40%, to consumer goods (0.83 p.p.). In the latter case, the increase was influenced by 0.15 percentage points by durable consumer goods and 0.68 p.p., by semi-durable and non-durable goods.

In 12 months, the industry price change reached in April 4.30%, with the following variations: capital goods, 2.14% (0.19 p.p.); intermediate goods, 2.08% (1.19 p.p.); and consumer goods, 8.54% (2.92 p.p.), and the influence of consumer durable goods was 0.31 p.p. and semi-durable and non-durable consumer goods, 2.62 p.p.

Sixteen of the 24 industrial activities had price reductions

In July/2016, only eight of the 24 activities recorded positive price changes compared to the previous month. The four major changes occurred in mining and quarrying industries (-11.94%), other transportation equipment (-3.20%), tobacco (-3.20%) and printing (2.96%). The major influences came from mining and quarrying industries (-0.37 p.p.), food (0.37 p.p.), other chemicals (-0.27 p.p.) and other transportation equipment (-0.08 p.p.).

The cumulative indicator in the year reached -0.67% in July, against -0.11% in June. Among the activities that had the highest percentage changes in relation to this indicator, the highlights are: other chemicals(-10.41%), other transportation equipment (-10.13%),  printing (9.14%) and tobacco (-8.85%). The most influential sectors were: food products (1.55 p.p.), other chemicals (-1.11 p.p.)  petroleum refining and ethanol products (-0.50 p.p.) and other transportation equipment (-0.26 p.p.).

In 12 months, the price changes that occurred in July 2016 were of 4.30%, against 5.65% in June. The four major variations occurred in food products (20.19%), print (14.42%), toiletries, soaps and cleaning products (13.13%) and mining and quarrying industries (-11.88%).  Concerning this indicator, the sectors of greatest influence were food products (3.80 p.p.), other chemicals (-0.75 p.p.), motor vehicles (0.41 p.p.) and mining and quarrying industries  (-0.39 pp).

Mining and quarrying industries: in July, mining and quarrying industries dropped prices, recording a change of -11.94% compared to June. The influence of price changes in the activity on the overall industry was -0.37 p.p. As a result, the cumulative index in the year increased from 13.03% in the previous month, to -0.46% in July.

In the comparison with July of 2015, there was a change of 11.88%. The influence of price changes in the activity on the cumulative index in 12 months of the overall industry was -0.39 p.p.

Food products: The average price change of the sector, in the comparison with June, was of 1.73%. It is the third consecutive positive rate. The cumulative index of the year (7.74%) is only surpassed by that of July 2012 (12.09%). In the cumulative index over 12 months, July's prices in 2016 are 20.19% higher than those of July 2015.

Among the products of greatest price increase from June to July, all are derived from milk, however, among the most influential - although the main influence is 'sterilized milk / UHT / Long Life' – there are products related to other groups: vegetable and animal oil and fats, manufacture and refining of sugar and slaughter and manufacture of meat products. The only negative change was seen in 'frozen poultry and giblets'. The four items which had the greatest influence accounted for 0.34 p.p. of the change of 1.73%.

Petroleum refining and ethanol products: for the second month in a row, the sector presented a positive change of prices in the comparison with the previous month: 0.25% (in June it had been 1.61%). That, however, did not prevent the cumulative index of the year from continuing negative (-4.79%) and, for that reason, the sector is the third to exert influence on the change seen in the set of mining and quarrying and manufacturing industries (-0.67%). In the cumulative index in 12 months, the prices of July 2016 were 0.10% higher than those of July 2015.

Of the four products with the greatest weight in the comparison with June, both in terms of change and of influence, two ('aviation kerosene' and 'naphtha') recorded positive changes, while 'diesel fuel and other fuel oils' and 'ethanol (anhydrous or hydrated)' got negative. The influence of the four products over the change of 0.25% was of 0.24 p.p., considering that the products of greater weight had a negative influence on the result.

Other chemicals: the chemical industry recorded in the month of July, a -2.69% price change compared to June, offsetting two consecutive months of rising prices, which sharpened the cumulative decline in the year (-10.41%) - the highest negative change among all analyzed activities -, and in the last 12 months (-6.92%), much of it as a result of the international market and the price of petroleum products which are inputs for some chemicals.

The four most influential products month over previous month (NPK fertilizers, polypropylene, ammonium sulfate or urea, HDPE) accounted for -1.70 p.p. in the result of -2.69 %; i.e., the other 28 products contributed with -0.99 p.p.

Motor vehicles: in the comparison against June, the sector prices changed -0.29% - second consecutive negative change. The cumulative index in the year is at 1.07% and, in 12 months, the change is of 3.77%, the lowest rate of the year, starting at 7.14%.

The result is mainly influenced by a set of products belonging to the manufacturing of pieces and accessories for motor vehicles.

Other transportation equipment: in July, the prices of Other Transportation Equipment kept a downward trend, recording a negative change (-3.20%) for the sixth month in a row. The cumulative index of the year stood at -10.13% and, in 12 months, there was a positive change of 3.02%. The prices of the activity had a highlight in the negative influence on the monthly change of prices of the industry overall (-0.08 p.p.) and also on the cumulative change over the year (-0.26 p.p.).