The Producer Price Index (IPP) changed -0.33% in February over the previous year. This result was lower than the rate seen in the comparison between January 2013 and December 2012 (-0.10%).  The cumulative indicator of 2013 reached -0.43%. The cumulative indicator over 12 months grew 7.73%, whereas in January the change was 7.63%.

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/default.shtm.

13 of the 23 activities surveyed registered price rises

In February 2013, 13 of the 23 activities registered positive price changes in the comparison with the previous month. In January, 11 activities grew. The four major changes came from toiletries, soaps and cleaning preparations (3.02%), food products (-2.56%), tobacco (-2.02%) and textiles (1.82%).  The sectors to exert the greatest influence, in the comparison between February/13 and January/13 (-0.33%) were food products (-0.51 p.p.), petroleum refinement and alcohol products (0.17 p.p.), optical, electronic and computer equipment (-0.05 p.p.) and toiletries, soaps and cleaning preparations (0.04 p.p.). 

The cumulative indicator of the year (February/13 against December 2012) reached -0.43%. Among the activities that registered the highest percentage changes, the highlights were food products (-4.04%), optical, electronic and computer equipment (-3.52%) and other transportation equipment (-3.20%). In this indicator, the sectors to exert the greatest influence were food products (-0.81 p.p.), petroleum refinement and alcohol products (0.19 p.p.), other chemical products (0.11 p.p.) and optical, electronic and computer equipment (-0.11 p.p.).

Food products: In February 2013, the prices of food products changed, on average, -2.56%. In the year, the sector recorded cumulative a change of -4.04%, and, compared to February 2012, the most recent prices were 11.90% higher. Compared to January 2013, the four most influential products (soybean residues, fresh or chilled beef, raw soybean oil, either degummed or not, and concentrated orange juice) accounted for -2.34 p.p. of the -2.56% change.  The first three products, along with cacao butter, recorded some of the highest price changes in the sector, all of them with negative change and contribution.  

Tobacco: in February 2013, the prices had a negative change of 2.02% compared to those of January, with the highest reduction since February 2012, whereas, due to the previously mentioned negative change, the cumulative result of 2013 stayed at -0.91%. Compared to February last year (12 months), the result stayed at 23.32%, due to climate factors which affected the production, with subsequent rise in prices. The government regulation stipulated a minimum price for cigarettes and mainly the exchange rate of 14.8%.

Textiles: when compared to other sectors of manufacturing industry, the textiles segment recorded in February/2013 the fourth highest price change in the month (1.82%) and the third highest change index (3.28%).  In relation to the last year, when prices grew on average 1.46% (from January to December 2012), the last two months registered an acceleration of prices so that the cumulative index in these two months was 3.28%.  As a result, the cumulative index in 12 months changed 4.19%.

Paper and pulp: the manufacture of pulp, paper and paper products recorded in February a negative change of 0.73% compared to January, the second negative result in the year. As a result, the cumulative index in 2013 was -1.01% in February, a similar result to that of February/2012 (-0.72%). The cumulative index in 12 months stayed at 12.26%.

Petroleum refining and alcohol products:  the activity recorded a rise of 1.56% in February versus January 2013, following the upward trend registered since March 2012. In the year, the sector accumulates a high of 1.71%. The comparison between the indicator in January 2013 and in the previous year resulted in 9.09%.

Toiletries, soaps and cleaning preparations: the activity recorded 3.02% in February compared to January 2013, reversing the drop of -2.12% which occurred in the previous month. In the year, the sector accumulated a high of 0.84%, and in the last twelve months, it reached change of 4.53%.

Other chemical products: the chemical industry recorded 0.22% in February, compared to January, following the upward trend observed since December 2012, when the figure had been 0.42%, against November. In the year, there was increase of 0.97%, whereas, in the February 2013/ February 2012 comparison, the sector recorded a high of 14.60%.

Optical, electronic and computer equipment:  the activity recorded -1.55% in February compared to January 2013, following the downward trend registered since August (-0.19%). The sector has accumulated -3.52% in the year. In the comparison between January 2013 and January 2012, there was a change of -1.63%.

Motor vehicles: in February 2013, prices remained stable, with a positive change of 0.01% compared to January, when there had been change of 0.86%. This result is the lowest since November 2012 (0.04%). This way, the cumulative index in the year also remained stable, with positive change of 0.87%. In 2012, the cumulative index in the beginning of the year was negative (in March, the change was -0.07%) and the change in the year was 1.05%.  In 12 months, the activity recorded a positive change of 2.01%, the highest since September 2012 (2.45%), against positive change of 1.92% registered in January, and 1.05% in December 2012.

Other transportation equipment: In February 2013, prices recorded negative change of 1.80% compared to those of January, against a negative change of 1.42% in the previous month. The cumulative index in the year had a negative change of 3.20%. In 12 months, the sector recorded a positive change of 10.12%, remaining stable against those registered in January, a positive 10.01% figure. Except for the first year of the series, 2010, February has normally recorded negative changes. The negative result in February 2013 (-1.80%) is the fourth of the series in magnitude, after the results of April 2011 (-2.07%), February 2012 (-1.90%), March 2010 (-1.83%).