In August of 2012, the Producer Price Index (IPP) changed 0.53% compared with July, when the index was 0.50%.  When compared with the same month a year ago (accumulated in 12 months), prices changed 7.53%, in August, against 7.14% in July. Conversely, the accumulated change in 2012 was of 5.59%, in August, and of 5.04% 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.

16 of the 23 activities surveyed registered a rise in prices

In August of 2012, as it happened in July, 16 of the 23 activities surveyed registered increases in prices. The highest growths recorded in August, in relation to July, were among the products of the industrial activities of food products (2.04%), manufacture of wearing apparel and accessories (1.87%), other chemical products (-1.50%), and toiletry, soaps and cleaning products (1.19%).

The items to exert the greatest influence, in the August against July change (0.53%), were food products (0.41 percentage points), other chemical products (-0.16 p.p.), petroleum refinement and alcohol products (0.08 p.p.)  and basic metals (-0.06 p.p.).  

The accumulated indicator of 2012 reached 5.59%, in August, against 5.04% in July/12. Among the activities that registered the highest percentage changes concerning this indicator, the highlights were:  tobacco (15.13%), food products (14.37%), paper and pulp (10.03%) and other transportation equipment (8.25%).

Concerning the accumulated indicator of the year, the major influential sectors were: food products (2.71 p.p.), petroleum refinement and other alcohol products (0.42 p.p.), paper and pulp (0.32 p.p.) and machinery and equipment (0.26 p.p.).

Compared with the same month of 2011 (accumulated in 12 months), the price change hit 7.53%, against 7.14% in July. The four major price changes came from tobacco (27.38%); food products (17.82%), other transportation equipment (17.28%) and beverages (14.42%).

The major influences on this indicator came from food products (3.32 p.p.), other chemical products (0.59 p.p.), petroleum refinement and alcohol products (0.55 p.p.) and motor vehicles (0.42 p.p.).

Food products: In August, the prices of the sector grew, on average, 2.04%, a lower result than the previous month’s, 3.10%. With August’s result, the prices of the sector accumulated a growth of 14.37%, the second position among the activities, only behind to tobacco (15.13%).  When compared with August of 2011, this year’s prices were 17.82% higher.  The accumulated in 2012, in August, is similar to that of October 2010, when the prices, in that month and year, accumulated a growth of 14.12%.  It is worth mentioning that compared to the recent behavior of the sector (with positive changes in the soybean byproducts’ prices), the effect of the low supply of rice in the market stood out in August. As a result, rice products stand out both in terms of price change and of influence.

Paper and pulp: the activity presented in August a negative change of 0.31%, against a positive change of 0.73% in July/2012. This is the second negative mark of the year (in January/12, -1.57%).  Thus, the accumulated of the year was 10.03%, below the 10.37% registered in July. The index of August 2012/ August 2011 was positive (6.81%), surpassing the result of July (5.63%). This indicator evolved in an ascendant way starting in January 2012, when it recorded -8.29%.

Petroleum refinement and alcohol products:  the activity posted a rise of 0.77%, in August, in relation to July, keeping the upward trend started in June (0.15%).  In the year, the sector accumulated an increase of 3.82%.  The result of August 2012/August 2011 was at 4.98%. In relation to “ethyl alcohol (anhydrous or hydrated)”, a highlight among the four main products in terms of influence on the accumulated of the year, 60% of the recorded information in August presented a negative trend in relation to June, recording, thus, a consistent downward movement in the analyzed month. The “naphthas” had a notable fall in the international market for the second month in a row, which is visible in the indicator of August against July. Such product is also very important to the chemical sector, since it is an input for the manufacture of organic chemicals.

Other chemical products: the prices of the chemical industry registered, in August, a change of -1,50% in relation to July 2012. It was the second consecutive negative result of the sector after a two-year period of rises. In the year, the sector recorded a positive change of 2.02% and, in the comparison between August 2012/ August 2011, the sector had an increase of 5.51%.  

Basic metals: the activity presented, in August, a change of 0.82%, reversing the -1.20% result of July 2012 and restoring the series of positive results from March through June 2012. In the accumulated in the year, after the sector presented negative changes from July 2011 until April 2012, the result of 1.58% was the fourth consecutive positive change.  The August 2012/ August 2011 comparison, on its turn, is the second positive point of the series (1.55%) – the other occurred in December 2010 (3.95%)

Machinery and equipment: the activity presented, in August, a change of 1.11%, reversing the -1.00% result of July 2012. Except for July, the activity recorded positive results from March through June 2012. With August’s positive result, the index accumulated in the year of 2012 rose up to 5.88%, the highest in the series. The August of 2012/ August 2011 comparison recorded, in August, 6.94%, the greatest index in the series.  

Motor vehicles: in August of 2012, the activity prices presented a positive change of 0.18%, in August, against a positive change of 0.80% in the previous month.  As a result, the accumulated of the year closed with a change of 1.54%.  In the comparison August 2012/ August 2011, the sector recorded a positive change of 3.50%, against a positive change of 3.45% in previous month.