In March 2011, the Producer Price Index (IPP) changed by 0.39% and recorded a lower result compared to that of the previous month

In March 2011, the Producer Price Index (IPP) changed by 0.39% and recorded a lower result compared to that of the previous month (0.60%). In the comparison between the current month and the same month in the previous year (index accumulated in 12 months), prices recorded changes of 6.80% in March and 6.22% in February. The change accumulated in 2011, up to March, was 1.40%. 

IPP measures the development of "factory gate" prices, excluded taxes or freight, for 23 manufacturing industry sectors. Its complete publication can be accessed at www.ibge.gov.br/home/estatistica/indicadores/precos/ipp.

Eleven out of the 23 activities surveyed recorded price rises

In March 2011, eleven out of the 23 activities surveyed recorded price rises, versus 14 activities in the previous month. The four biggest changes from February to March were those of printing (5.35%), petroleum refining and alcohol products (1.99%), footwear and leather articles (1.86%) and textiles (1.41%). The items accounting for the main influence or contributions in the difference between February and March (0.39%) figures were petroleum refining and alcohol products (0.22 percentage points), other chemical products (0.15 percentage points), food products (- 0.11 percentage points) and metallurgy (0.05 percentage points).

The indicator accumulated in 2011 reached 1.40% in March. Among the activities that recorded biggest percent changes considering the accumulated indicator, the highlights were: textiles (9.54%), other chemicals (8.18%), rubber and plastic (4.19%) and footwear and leather articles (3.95%). The subsectors with the biggest level of influence were other chemicals (0.84 percentage points), petroleum refining and alcohol production (0.39 percentage points), textiles (0.20 percentage points) and rubber and plastic (0.15 percentage points).

Compared to the indicator accumulated in the same month of 2010 (accumulated in 12 months), prices rose 6.80% in March, with a lower change than that of February (6.22%). The four main price changes were those recorded by textiles (26.54%), food products (16.75%), other chemical products (14.84%) and printing (10.87%). The main influences in the comparison between March and the same month in the previous year occurred due to food products (2.84 percentage points), other chemical products (1.50 percentage points), petroleum refining and alcohol production (0.91 percentage points) and textiles (0.51 percentage points).

In March 2011, the prices of food products changed by -0.59% versus the figure in the previous month, -0.31% accumulated in 2011 and 16.75% in relation to March 2010. Sterilized/UHT/carton milk was a highlight both in terms of the monthly change and level of influence (positive, in this case) compared to the February result. In an analysis per year, soybean derivatives and concentrated orange juice were the highlights in terms of change and level of influence (both positive). In the specific case of tarts and other residues of soybean oil, however, in comparison with figures in the previous month and accumulated in 2011, its influence was negative, similarly to that of fresh or frozen beef (which was not highlighted in terms of change). 

In the comparison of March versus February 2011, the prices of textiles rose 1.41%, the lowest rate in the quarter (4.99% in January and 2.88% in February). Considering the index accumulated in 2011, prices rose 9.54% up to March (8.02% in the previous month). In the comparison with data relative to the same month in the previous year, there was increase of 26.54% (25.89% in February). The main highlights in terms of change, influence or contribution are products made of cotton and have represented positive impacts to the indicators, except for simple cotton thread (negative change in comparison with the previous month and in this same indicator as well).

In March, the prices of petroleum refining and alcohol products rose 1.99% (0.78% in the previous month), having accumulated increase of 3.67% in the year (1.64% up to February). The prices of this sector were, on average, 8.29% higher in March than in the same month in the previous year (4.84% in February). Ethyl alcohol (anhydrous or hydrated), naphtha for petrochemical industry and aviation kerosene are highlights both in terms of change and in terms of influence on the three indicators calculated, and accounted positive impacts on them. Diesel and other fuel oils, on the other hand, affected the indicators negatively in terms of the index accumulated in the year. Gasoline does not feature among the four major changes or levels of influence, but it is the second main contribution to the calculation of the indexes. Its change was practically irrelevant in March 2011, what held back price rise of this sector.

With the rise of 1.41% in March (3.34% in February), other chemicals accumulated in 2011 a total 8.18% of price rise (6.67% up to February). In an analysis by year, in March, the prices of this sector were 14.84% higher than in the same month of 2010 (13.53% in the previous month). The main changes observed in the last month are styrene, ammonia, printing pain and expandable polystyrene, products which did not feature among the main influences in the month. Considering the index accumulated in the year and in comparison with March 2010, some of the main changes of prices were recorded by those products with the biggest contribution (NPK and non-saturated ethylene). These products are usually among the most influential in any of the indicators calculated.

In March, rubber and plastic faced positive changes above those observed in the previous month: 1.20% in relation to the previous month (0.66% in February), 4.19% accumulated in 2011 (2.95% in the previous month) and 9.10% compared to the same month in the previous year (7.81% in February). Tires, in general, feature as a highlight for having recorded positive changes of bigger prices or for affecting more significantly the calculation of indicators (from any perspective). The influence of tires is positive, with a single exception: compared to the previous month, the negative change observed in the prices of tires of trucks/buses affected this indicator negatively.

Metallurgy prices rose, on average, 0.65% in March (1.27% in February). With this increase, the sector accumulated negative change of 1.10% in 2011 (-1.74% in the previous month) and placed its level of prices 0.27% above that of the same month in the same month of 2010 (- 0.34% in February). The rises observed in the sector came mainly from products made of aluminum. Carbon-steel ingots, blocks, rods and plates, products which accounted for major contributions to this sector indicators, affected negatively the comparison between March and February 2011.  

The prices of automotive vehicles recorded negative change in March compared to those in the previous month (-0.09%), what represented a more significant fall of prices than in February (-0.07%). As a result, the sector recorded increase of 0.11% in 2011. Compared to March 2010, prices were 0.23% lower in March 2011. Among the products that accounted for the biggest contribution to the March index (passenger automobiles, diesel trucks, engine pieces and tractor trucks for trailers and semi-trailers, the contribution of which is approximately 70%), only tractor trucks for trailers and semi-trailers (compared to the previous month) and diesel trucks (in relation to March 2010) recorded a significant price change. Considering tractor trucks for trailers and semi-trailers, the negative change in the previous month has not affected the indicator significantly. The difference observed in truck prices is one of the four most significant ones, versus March last year, and was the most influential to this indicator.