In May 2012, the Producer Price Index (IPP) changed 1.65% when compared with April, a higher result than the rate seen in the comparison between April and March (1.46%).  Contrasting the current month with the same month a year ago (accumulated in 12 months), prices changed 4.73% in May and 2.55% in April.  The accumulated change of the year was of 3.32%.

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.

In May, 19 of the 23 activities changed positively in relation to April

In May of 2012, compared with the previous month, 19 of the 23 activities registered positive price changes against 21 activities of April in relation to March. The four highest changes observed in January were registered for the products of the following industrial activities: tobacco (6.94%), printing (-5.03), other transportation equipment (4.48%) and other chemical products (3.19%).

In terms of influence, in the comparison between May/2012 and April/2012 (1.65%), the highlights were food products (0.59 p.p.), other chemical products (0.34 p.p.), basic metals (0.14 p.p.) and petroleum refining and alcohol products (0.13 p.p.).

Comparing May/2012 to December/2011 (accumulated in the year), the price changes was of 3.32%, against 1.64% in April. The four major price changes were observed in tobacco (14.65%), paper and pulp (7.32%), food products (6.23%) and other transportation equipment (5.66%).

The major influences for the indicator accumulated in the year came from food products (1.17 p.p.), other chemical products (0.5 p.p.), petroleum refinement and alcohol products (0.24 p.p.) and paper and pulp (0.23 p.p.).

Comparing May/2012 and May/2011 (accumulated in 12 months), the price change hit 4.73%, against 2.55% in April. The four major price changes were observed in tobacco (24.90%), footwear and leather articles (16.25%), other transportation equipment (14.24%) and food products (12.98%).

The greatest influences for this indicator were food products (2.33 p.p.), other chemical products (0.57 p.p.), petroleum refinement and alcohol products (0.32 p.p.) and beverages (0.32 p.p.).

Food products: with a change of 3.11% of the prices of May in relation to those of April (the highest result since August 2011), the sector of food products accumulates a positive change of 6.23% in 2012. In the comparison May/2012 – May/2011, this year’s prices are 12.98% higher than last year’s. In this comparison, the changes have been growing since February 2012 and the result of May is the greatest since October of 2011.

Beverages: just as it was seen in the general result of the manufacturing industries, the sector of beverages presented an acceleration of prices in the last months. In May/2012, the sector recorded a change of 1.58% in the comparison with the previous month (in March/2012 and April/2012 the results were 0.55% and 1.10%, respectively). The result accumulated in the last 12 months stood as one of the highest (the fifth) recorded among the industrial sectors, 12.20%.

Tobacco: the prices in the tobacco sector presented an increase of 6.94% compared to the previous month. The result of this indicator is mainly due to the rise of approximately 7.06% of the dollar in relation to the real, occurred in the month, and to the rise in the prices of the cigarettes.  Conversely, in the indicator accumulated in 12 months, the result records a rise of 24.90%, the highest among all sectors of the manufacturing industries. In the picture of the index accumulated in 2012, the change was of 14.65% (the greatest increase in the scope of the manufacturing industries), influenced again by the increase of the dollar and by the rise of cigarettes in April and May.

Footwear and leather products: The prices in this sector presented a growth of 1.36% compared to the previous month. This monthly rate is the second highest among the five monthly rates estimated in 2012, inferior only to the rate seen in March this year (1.71%). In 2012, the sector accumulates a growth of 3.94%, which is the sixth value in the rank of sectors (a position also reached by the sector of machinery and equipment). The May 2012 over May 2011 analysis revealed a high of approximately 16.25%, the second highest among all the sector surveyed, inferior only to the manufacture of tobacco products (which had a rise of 24.90%).

Paper and pulp: in the comparison with April, the sector had a change of 2.19%. In the accumulated of the year, the indicator registers 7.32%. Finally, in the accumulated in 12 months, the index was 2.18%.

Printing: in May 2012, the prices of the activity presented a negative change of 5.03% in the comparison with the previous month, against a positive change of 3.10% in April. In the accumulated index of the year, the change was of 1.99% against the positive change of 3.21% registered in the previous month. As to the accumulated in 12 months, the sector presented a negative change of 3.67%, against 0.65% negative registered in April.

Petroleum refining and alcohol products: this activity registered in May a high of 1.17% in the comparison with April and, in the accumulated in the year, a positive change of 2.15%. In the result accumulated in 12 months, the sector recorded a rise of 2.92%.

Other chemical products: the chemical industry registered, in the comparison with the previous month, a high of 3.19%, keeping the positive trend of the previous months, the last negative result occurred in February 2012 (-1.04%). In the accumulated in the year, the sector registers a change of 4.70% and, in 12 months, the change is 5.20%.

Basic metals: in May of 2012, the activity recorded, for the third consecutive month, a positive change in its comparison with the previous month (1.74%), which made the accumulated change in the year become for the first time – and after ten months – positive (1.72%). In the perspective of the accumulated in 12 months, just as it has been happening since January 2011, there was a negative change (-2.65%).

Motor vehicles: in May 2012, the prices of the activity presented a negative change of 0.56% in the comparison with April, against a positive change occurred both for the previous month (0.50%) and for March (0.01%). As a result, the accumulated in the year closed with a negative change of 0.14%. In the accumulated in 12 months, the sector presented a positive change of 2.07 against a positive change of 3.04% in the previous month.

Other transportation equipment: in May 2012, the prices of the activity presented a positive change of 4.48% in the comparison with the previous month, against a positive change of 2.13% in April. Thus, the accumulated in the year shows a positive change of 5.66% (fourth highest among the sectors of the manufacturing industries).  In the accumulated in 12 months, the sector presented a positive change of 14.24% against a positive change of 10.59% registered in the previous month.