In April of 2012, the Producer Price Index (IPP) changed 1.38% as compared to the previous month; a higher result than the one achieved in March (1.04%).  Contrasting the current month with the same month a year ago (accumulated in 12 months), prices changed 2.47% in April, against 1.36% in March. Conversely, the accumulated change in 2012 was of 1.55% in April and of 0.17% in the previous month.

IPP measures the evolution of “factory gate” prices, discounted taxes and freight, of 23 sectors of the manufacturing industry.  The complete publication can be accessed at 

www.ibge.gov.br/english/estatistica/indicadores/precos/ipp.

Food products: in April of 2012, the prices of food products changed 2.81% when compared to March of 2012. This is the highest rate since September of 2011 (2.88%) and the second consecutive positive rate after four negative rates. With the result of April, the sector accumulates in 2012 a price change of 2.84%. When compared with the same month of 2011, April prices in 2012 are 7,65% higher.  It is worth mentioning that, in this comparison, the result is the highest since October of 2011 (9.88%).

Beverages: contrasting with March of 2012, the sector of beverages kept the positive price change, with 1.10% in April of 2012, just as it did in the previous month (0.55%).  In the accumulated index of the year, the change was of 1.61%. Conversely, the accumulated of the last 12 months was of 10.76%, one of the highest results presented among the industrial sectors. 

Tobacco: in April, the prices in the tobacco sector posted an increase of 7.95% compared to the previous month. This result is mainly due to cigarette price increase and to the approximately 3.00% rise of the dollar in relation to real in April. In the accumulated of 2012 the change was of 7.21%, influenced again by the rise of the dollar in the year and by cigarette price increase in April. As to the 12 month accumulated indicator, the result shows an increase of 18.17%.

Paper and pulp: in relation to March of 2012, the sector recorded in April a change of 1.92%, the third positive change since the beginning of the year, leveraging the accumulated of 2012 to 5.00%. In the accumulated of 12 months, the change was of 1.15%. 

Petroleum refinement and alcohol products:  in April, the activity registered a rise of 1.37% in relation to March, keeping the upward trend recorded last month. The sector accumulates in the year a high of 0.94%. On the other hand, as compared to the same month a year ago, the result was -0.41%. 

Other chemical products: the chemical industry registered in April a high of 2.78% in relation to March of 2012. It was the second consecutive rise of the sector, after a period of five downfalls in a row since November of 2011. In the year, the sector accumulates a positive change of 1.10%, and in the comparison between April 2012 / April 2011, it presents a rise of 0.81%. 

Basic metals:  in April of 2012, the activity recorded, for the second consecutive month, a positive change in comparison with the previous month (0.47%), which practically did not change in the year (-0.02%). In the accumulated of twelve months, the change was of -3.03%. 

Optical, electronic and computer equipment:  when compared to March, in April of 2012, the negative change seen in the prices of the sector (-2.18%) was the highest in the group of the 23 activities.  In 2012, the sector accumulates a positive change of 3.61%, the third highest among the accumulated indexes, lower than tobacco (7.21%) and paper and pulp (5.00%). From this perspective, the sector presents a deceleration, after registering 0.84% in January, 1.34% in February and 5.92% in March. All in all, in the accumulated of 12 months, current prices are still 5.24% lower. 

Motor vehicles: in April of 2012, the prices of the activity presented a change of 0.48% in the comparison with March, when they were stable (0.01%).  Thus, in the accumulated index of the year closed in 0.41%. The accumulated of the 12 months, the sector registered a positive change of 3.02%, against 2.37% in March.

21 of the 23 activities surveyed registered a rise in prices

In April 2012, 21 of the 23 activities surveyed registered a rise in prices, against 18 in the previous month. The four highest changes observed in April in relation to March were registered among the products of the following industrial activities:  tobacco (7.95%), printing (3.10%), food (2.81%) and other chemicals (2.78%).

The sectors to exert the greatest influence in this comparison were food products (0.53 p.p.), other chemical products (-0.30 p.p.), petroleum refinement and alcohol products (0.15 p.p.) and optical, electronic and computer equipment (-0.07 p.p.).

The accumulated indicator of 2012 reached 1.55% in April, against 0.17% in March.  Among the activities that registered the highest percentage changes as to the accumulated indicator, the highlights were tobacco (7.21%), pulp and paper (5.00%), optical, electronic and computer equipment (3.61%), apparel and accessories (3.54%).  The sectors to exert the greatest influence were food products (0.54 p.p.), paper and pulp (0.16 p.p.), other chemical products (0.12 p.p.) and optical, electronic and computer equipment (0.11 p.p.).

When compared with the same month of 2011 (accumulated in 12 months), prices rose 2.47% in April, against 1.36% in March. The four major price changes came from tobacco (18.17%); footwear and leather (15.14%), beverages (10.76%) and other transportation equipment (10.59%). The major influences in the comparison of April against the same month a year ago came from food products (1.39 p.p.), motor vehicles (0.35 p.p.), beverages (0.28 p.p.) and basic metals (-0.26 p.p.).