In October of 2011, the Producer Price Index (IPP) changed 0.21% compared with the previous month; a lower result than that recorded in September (0.69%). When compared with the same month a year ago (accumulated in 12 months), prices changed 6.37% in October, against 6.95% in September. The accumulated change in 2011 was of 5.08% in October and of 6.31% 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.

14 of the 23 activities surveyed registered a rise in prices

In October 2012, 14 of the 23 activities surveyed registered a rise in prices, against 15 in the previous month. The four highest changes in October in relation to September were registered among the products of the following industrial activities:  other chemical products (3.48%), food products (-1.51%), beverages (1.18%) and furniture (1.15%).

The sectors that exerted the greatest influence in this comparison were other chemical products (0.38 p.p.), food products(-0.31 p.p.), petroleum refinement and alcohol products (0.11 p.p.) and beverages (0.04 p.p.).

The accumulated indicator of 2012 reached 6.54% in October against 6.31% in September. Among the activities that had the biggest percentage changes in this perspective, tobacco (15.26%), food products (13.47%), beverages (13.19%) and paper and pulp (10.25%) stand out. The sectors with the greatest influence were food products (2.54 p.p.), other chemical products (-105 p.p.), petroleum refinement and alcohol products (0.59 p.p.) and beverages (0.37 p.p.).

When compared with the same month of 2011 (accumulated in 12 months), prices rose 6.37% against 6.95% in September. The four major price changes came from tobacco (18.34%); beverages (16.30%), food products (13.09%) and other transportation equipment (10.80%). The major influences in the comparison between October and the same month a year ago came from food products (2.47 p.p.); other chemical products (0.84 p.p.); petroleum refinement and alcohol products (0.61 p.p.) and beverages (0.45 p.p.).

Food products: in October 2012, the prices in the sector changed -1.51% in relation to September of the same year, the first negative rate since February (-1.41%). With this result, the sector accumulated, in 2012, a price change of 13.47%. When compared with the same month of 2011, October prices in 2012 were 13.09% higher.  This is the lowest result since May 2012 (13.11%), confirming the drop seen since July 2012 (19.64%).

Beverages: in the comparison to September 2012, the beverages manufacturing sector recorded a change of 1.18% against 4.60% in the previous month. The accumulated indicators in the year and in twelve months were 13.19% and 16.30%, respectively. With the increases observed since March 2012, the sector stood out in all indicators, both in terms of change and influence.

Petroleum refinement and alcohol products:  in October, the activity registered a rise of 0.99% in relation to September, keeping the upward trend recorded since June. The sector accumulated, in the year, a high of 5.33%. In the accumulated of twelve months, the prices of October/2012 were 5.53% higher than last year. In terms of products, the increases in all of the three indicators are related to petroleum products.  Products related to alcohol posted a drop in the three comparisons.

Other chemical products: the chemical industry recorded, in October, a high of 3.48% in relation to September 2012, keeping the upward trend, which had registered 3.94%. In the year, the sector accumulated a positive change of 9.70% and in the accumulated in 12 months, the high rate reached 7.67%. The increase of the naphtha international price, an important raw material of the sector, has a direct influence in the increases of the sector, in particular in products as such “ethane (ethylene)”, whose  price change in October was the biggest highlight among the products of the sector.