The Producer Price Index (IPP) changed 0.78% in November, being above the 0.09% recorded in the previous month. As a result, the cumulative index in the year reached 0.40%, versus -0.37% of October. The cumulative index in 12 months was 0.05%, above the -1.14% of October. IPP measures the evolution of “factory gate” prices, excluded taxes or freight, for 23 manufacturing industry sectors. The complete publication can be accessed here.

Table1
Producer Price Indexes, by Mining and Quarying and Manufacturing Industries
(General Industry) and Sections - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

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In November 2016 (0.78%), 21 of the 24 activities recorded price rises versus October figures, against 11 in the previous month. The four biggest increases were those of basic metals (3.67%), tobacco (3.62%), other transportation equipment (3.24%) and mining and quarrying industry (2.20%). In terms of influence, the highlights were basic metals (0.26 percentage points – p.p.), other transportation equipment (0.08 p.p.), food products (0.07 p.p.) and mining and quarrying industry (0.07 p.p.).

The cumulative indicator in the year (November 2016 versus December 2015) reached 0.40%, versus -0.37% in October. Among the activities which recorded the main percent changes, the highlights were mining and quarrying industry (12.40%), other chemical products (-12.36%), printing (10.53%) and toiletries, soaps and cleaning products (8.88%). The most influential sectors were food products (1.73 p.p.), other chemicals (-1.2 p.p.), oil refining and etanol products (-0.51 p.p.) and motor vehicles (0.34 p.p.).

A comparison between November 2016 and November 2015 (cumulative in 12 months), show a change of prices of 0.05%, versus -1.14% in October. The four biggest price changes were those of other chemicals (-14.72%), printing (13.04%), food products (9.45%) and toiletries , soaps and cleaning products (8.96%). In this indicator, the most influential sectors were food products (1.87 p.p.), other chemicals (-1.61 p.p.), oil refining and etanol products (-0.52 p.p.) and motor vehicles (0.41 p.p.).

Among the main economic categories versus the previous year, there were changes of 1.34% in capital goods; 0.63% in intermediate goods; and 0.87% in consumer goods (0.29% in durable consumer goods and 1.04% in semi-durable and non-durable consumer goods). The contribution of the main economic categories was: 0.12 p.p. from capital goods; 0.35 p.p. from intermediate goods; and 0.31 p.p. from consumer goods (0.29 p.p. from semi-durable and non-durable goods and 0.02 p.p. from durable consumer goods).

From the perspective of cumulative figures in the year (0.40%), changes were -0.65% in capital goods (with a influence of -0.06 p.p.); -1.98% in intermediate goods (-1.12 p.p.); and 4.57% in consumer goods (1.58 p.p.). In this last one, increase had a 0.24 p.p. influence from durable consumer goods and a contribution of 1.34 p. p semi-durable and non-durable goods.

In the anual rate (cumulative index in 12 months) changes were -0.59% in capital goods (with na influence of -0.05 p.p.); -2.81% in intermediate goods (-1.60 p.p.); and 4.96% in consumer goods (1.70 p.p.), with a contribution of 0.26 p.p. from durable goods and of 1.44 p.p. from semi-durable and non-durable goods.

Table 4
Producer Price Indexes, by Mining and Quarrying and Manufacturig Industries (General Industry)
and Major Economic Categories - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

21 of the 24 activities surveyed recorded price rises

In November 2016, 21 of the 24 activities surveyed had price rises, the main highlights being:

Mining and quarrying industry: in November, the prices of the sector rose 2.20%. This result has led the cumulative index in the year to reach 12.40%, the biggest change in all the activities of industry. in the last 12 months, the sector also had a cumulative positive change of 5.58%. Despite the good performance of this sector among all the activities surveyed , with the main cumulative change in the year, it aso had the fourth biggest monthly change and accounted for the fourth main contribution in comparison with the previous year (0.07 p.p. in 0.78%). Among the four products analyzed in this activity, only the prices of crude fuel oills recorded decreases in the period.

Food products: the change of prices of food products was 0.32%, higher than in the previous month (0.29%). WSith this result, the cumulative index inthe year reached 8.66% and, in comparison with the same month in 2015 (cumulative in 12 months), the prices were 9.45% higher, the lowest rate since August 2015 (7.84%). Three products are among the four biggest changes and the four main contributions: demerara sugar, including VHP, refined soybean oil and residue from soybean oil extraction. Among these, only residue from soybean extraction had a negative change, opposite to soybean oil. The fourth product in terms of positive in terms of positive influence was crystallized sugar. The other four influential products accounted for -0.09 p.p., opposite to the average of the other products of the sector and that resulted in a change of 0.32%.

Oil refining and etanol products : in November, prices of the sector rose again versus those in the previous month, recording 0.12%, versus 0.74% in October. This positive change in the comparison with prices in the previous month did not stop the cumulative index in the year to record its 11th negative result in a row (-4.84%), the longest sequence of decreases in this type of indicator, the longest sequence of decreases for this indicator. That also influenced the anual comparison, the result of which, -5.00% is the smallest in all the time series of  IPP. The price changes found here are among the nain contributions in two of the three comparisons made: the third major cumulative contribution, -0.51 p.p. in 0.40% and also the third main contribution only overcome by the production of food products (22.35%) and the manufacture of motor vehicles and manufacture of motor vehicles, trailers and bodies (11.18%). Also accouting for  the positive change in the month and influencing the performance of ethyl alcohol (dry or hydrated), naphthas, eand aviation kerosene. On the other hand, for the behavior of the following indicators, the biggest influence is the negative change of diesel and other fuel oils, since that is the most representative item in thr calculation of the sector, surpassing 50%.

Other chemicals: the chemical industry in November rcorded a chabge of prices of 0.15% in relation to October, resulting in a cumulative index in the year of -12.36% (the biggest change observed in all the activities of the manufacturing sector.). Versus figures in the same period a year before (cumulative in 12 mkonths), the prices of the sector fell (-14.72%), being thag one the biggest change recorded and the biggest reduction of prices in the survey. The products styrene-butadiene rubber and polypropilene (PP) recorded positive results, oppossite to herbicides for use in agriculture and non-saturated propene (polypropilene) accounted for the main contributions to the monthly result, representing a negative figure in 0.15 p.p. in a change of 0.30% in the year, that is, with positve contributions from other products accounting for 0.45 p.p.

Basic metals: in November, there was a reversal of the decreses recorded in October and September, which reached a positive change of 3.67% (biggest change in the month) and, this way, leading to a hike of 3.96% in 2016 and, in the last 12 months, a price change of 3.01%. Three products associated with manufature of non-metallic material (unwrought non-alloy aluminum; copper bars, profiles and square bars and copper allowys and aluminum alloys in ligas de cobre e unwrought aluminium alloys) are among the items recording biggest changes. In the first two ones there is alos highlight to influence on the positive result. The last highlighted product, in terms of change and influence, was uncoated hot-rolled steel carbon coil. Carbon steel ingots, blocks, rods or plates is the fourth highlight in terms of influence in the month. The four products represent 2.91 p.p of the 3.67% of change in th month, versus the previous month.

Motor vehicles: in November, the rise of the sector was 0.44%, the fourth hike of this activity. That caused the cumulative index in the year to reach 3.27%. In November 2015, for example, the cumulative index had been 5.60%. In the last 12 months, the sector had cumulative change of 3.96%. Besides being one of the main sectors which rin the calculation of the indicator (second to food products, only), motor vehicles was the main cumulative in the year (0.34 p.p. in 0.40%) and also the fourth biggest contribution in the cumulative index in 12 months (0.41 p.p. in 0.05%). Among the four most influential products in the comparison with October, all recorded positive impact in the index, and thre of them accounted for the biggest contributions to this activty: flex-fuel, gasoline or ethanol passenger car with any engine power output, engine parts for motor vehicles and tractor-truck for trailers and semi-trailers. The fourth product is bodies for buses. The influence of these products was 0.45 p.p. in 0.45%, that is, the other 21 products in this activity nulled their results.

Other transportation equipment : the prices of other transportation equipment rose by 3.24% in November, reversing the decrease registered in the previous month (-1.28%). It was the third biggest change of prices among the activities surveyed. This increase, however, was not enough to reverse the decrease of cumulative prices in the year (-8.49%) and cumulative in 12 months (-6.75%). These indexes have presented negative changes since March/16 and August /16, respectively.