In April 2011, the Producer Price Index (IPP) changed by 0.34% compared to the figure in the previous year ...

In April 2011, the Producer Price Index (IPP) changed by 0.34% compared to the figure in the previous year, reaching a result below that of March (0.39%). In the comparison between the current month and the same month in the previous year (accumulated in 12 months), prices changed by 6.73% in April; the rate had been 6.81% in March. The accumulated change in 2011, up to April, was 1.74%.

IPP measures the evolution of "factory gate" prices, excluded taxes or freight, for 23 manufacturing industry sectors. The survey complete publication is available at www.ibge.gov.br/home/estatistica/indicadores/precos/ipp/.

13 of the 23 activities surveyed recorded price rises

In April 2011, 13 of the 23 activities surveyed faced positive price changes compared to March results, versus 12 activities in the previous month. The biggest rises occurred in pharmaceutical industry (2.60%), of petroleum refining and alcohol production (2.45%) and metallurgy (2.41%). On the other hand, tobacco (-2.78%) recorded the main negative change.  The most relevant items were petroleum refining and alcohol production (0.27 percentage points), food products (-0.22 percentage points), metallurgy (0.20 percentage points) and other chemical products (0.06 percentage points).

The indicator accumulated in the year reached 1.74% in April. Among the activities that recorded the biggest percent changes, the highlights were textiles (11.34%), other chemical products (9.10%), petroleum refining and alcohol production (6.14%) and footwear and leather articles (5.79%). The most influential sectors were other chemical products (0.93 percentage points), petroleum refining and alcohol production (0.66 percentage points), food products (-0.28 percentage points) and textiles (0.24 percentage points).

Compared to April 2010 (accumulated in 12 months), the change of prices was 6.73%. The four biggest rises were those of textiles (27.12%), food products (16.80%), other chemical products (13.43%) and petroleum refining and alcohol production (11.93%). The main influences came from food products (2.79 percentage points), other chemical products (1.39 percentage points), petroleum refining and alcohol production (1.28 percentage points) and textiles (0.53 percentage points).

In April 2011, the prices of food products changed by – 1.21% compared to those in the previous year, -1.50% accumulated in 2011 and 16.80% in relation to April 2010. Demerara sugar, including VHP and crystallized sugar represented negative contributions to the index in the comparison with March this year; the latter also features in the accumulated index. Concentrated orange juice in the month/previous month comparison and husked white rice, parboiled or not and residue from the extraction of soybeans (accumulated) are other products accounting for negative contributions. The positive influence is limited to sterilized/ UHT/carton milk. In the last 12 months, the changes and positive contributions have come from soybean-derived products, crystallized sugar and concentrated orange juice.

The prices of products in the tobacco sector changed by -2.78% (compared to March 2011), -3.40% (accumulated in the year) and – 3.69% (compared to April 2010). It features among the four major ones changes recorded by industrial activities. Processed tobacco, the price of which is mostly linked to the variation of currency prices, has affected the index negatively.

In April 2011, the prices of textiles changed by 1.62% (compared to March), 11.34% (accumulated in the year) and 27.12% (compared to April 2010). The manufacturing sector recorded the biggest price changes in terms of the indicator accumulated in 2011 and compared to the same month in the previous year. Except for twisted cotton threads (with negative change versus March 2011) and simple cotton threads (negative contribution versus the previous month), which reacted to the fall of cotton prices in April, all the other products record positive change or influence. The rise of cotton prices in previous months may have been caused by the rise recorded by products derived from it.

Footwear and leather articles recorded change of 2.03% over March 2011. Considering the accumulated index, prices changed by 5.79%. Prices are 6.38% higher over those of April 2010. As in the previous month, the impact is positive in terms of change or influence and for any of the indicators calculated. Price changes in synthetic female footwear negatively affected both the indicator April/ March 2011 and the comparison with the same month in the previous year.

In April 2011, the prices of petroleum refining and alcohol production changed by 2.45% (compared to those in May), by 6.14% (accumulated in the year) and 11.93% (April 2010). Except for automotive gasoline and diesel and other fuel oils (with price changes which contributed negatively to the monthly and accumulated comparison), other products changed positively.

The prices of other chemical products in April were 0.56% higher than in March, having accumulated increase of 9.10% in the year. In relation to April 2010, these prices got 13.43 higher. Most of the products were positive highlights, except for ethylene (an influence in April versus March), ammonium sulfate and printing paint (change in April versus March). In pharmaceutical industry, prices in April were 2.60% above those in March 2011, having accumulated rise of 4.54%. In the annual comparison, prices in April 2011 were 9.13% higher than in the month in the previous year. These prices reflect the rise authorized by the government in April. 

Prices in the metallurgy sector rose, on average, 2.41% in April. As a result, the sector accumulated change of 0.80% in the year and its level of prices got 0.11% below that of the same month in 2010. In April, the positive changes in the prices of carbon-steel ingots, blocks, rods and plates. Other products have faced falling prices, what may explain the negative index (-0.11%) in the comparison between 2011 and 2010.

The prices of motor vehicles faced negative changes in April (- 0.16%). As a result, the sector recorded negative change of - 0.06% in 2011. Compared to April 2010, prices were 0.72% lower. The most significant changes in April were those of car pieces and accessories, such as brakes for motor vehicles (+), diesel and semi-diesel engines for buses and trucks (-) and pieces for motor vehicles (-), and tractor trucks for trailers and semi-trailers (-). The main negative contribution to indicators accumulated and compared to April 2010 came from passenger automobiles, gasoline, alcohol or biofuel.