The Producer Price Index (IPP) changed -0.38% in April, in relation to March 2014 , and stood below the rate seen between February and March (-0.21%). As a result, the cumulative rate of the year reached 1.36%, against 1.75% in March, and the cumulative index over the last 12 months went to 7.14%, against 7.98% in March.

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

https://www.ibge.gov.br/home/estatistica/indicadores/precos/ipp/default.shtm.

In April, the prices of the Manufacturing Industries changed, on average, -0.38% when compared to March - a lower figure than the one seen in the comparison between March/14 and February/14 (-0.21%). In April/14 MoM, 11 of the 23 activities registered positive price changes, against 6 in the previous month. The four major changes in April were: tobacco (- 2.83%), other transportation equipment (-2.73%), wood (-2.33%) and pharmaceuticals  (2.26%). As to influence, the highlights were other chemicals (-0.19 p.p.), food products (-0.08 p.p.), paper and pulp (-0.07 p.p.) and other transportation equipment (-0.06 p.p.).

The cumulative indicator of the year reached 1.36%, against 1.75% in March/14. Among the activities that, in April/14, had the highest percentage changes in this indicator, the highlights are: tobacco (-1.85%), wearing apparel and accessories (6.14%), petroleum refining and ethanol products (5.47%) and basic metals (4.88%). The sectors to exert the greatest influence were petroleum refining and ethanol products  (0.61 p.p.), basic metals (0.37 p.p.), food products (-0.29 p.p.) and motor vehicles (0.20 p.p.).

In the cumulative over 12 months M/M_-12, the change was of 7.14%, against 7.98% in March. The four major price changes came from footwear and leather (13.98%);  tobacco (11.51%,  food products (10.90%) and electrical machinery and apparatus (10.25%). The major influences came from petroleum refining and ethanol products (1.10 p.p.); food products  (2.09p.p.), other chemical products (0.65 p.p.) and basic metals (0.63 p.p.).

The sectors which, in April, stood out at least in one of the following criteria: highest price changes, greatest influence, are analyzed in terms of: M/M_-1, cumulative in the year and M/M_-12, and major weightings.

Food products: in 2014, April's result against March, -0.40%, was the third negative in the year (the exception was February, 0.56%). As a consequence, up to April the sector accumulated a change of -1.42%. In relation to M/M_-12, April’s prices in 2014 were 10.90% higher than those of April 2013. In March, this comparison was at 11.55%. In that same comparison, March's and April's rates in 2014 were only surpassed by February's result in 2013, 11.88%.

In the comparison with March 2014, just one product is both a highlight in terms of change and influence, "refined soybean oil". This product influence was positive and it was the only positive highlight in terms of influence. All in all, coupled with the negative influences in the prices of "residue of soybean extraction", "concentrated orange juice" and "crystallized sugar", the four highlights accounted for – 0.55 p.p., and – 0.40%.

Paper and pulp: the manufacture of Paper and Pulp recorded a negative change of 2.16% in April, reversing the cumulative result of the year to -1.46%. With such a result, the activity was one of the greatest impacts on the IPP in April, with a negative influence of 0.07 on the overall result of -0.38%.

The products with the greatest impact MoM were "pulp" and "notebooks", with negative results, and "wavy or corrugated paperboard boxes" and "disposable nappies", with positive results. The devaluation of the dollar was strengthened in this activity by the downfall in the average prices of pulp for exportation. These products together represented -2.22 p.p. of the total change of the month of April,  -2.16%.

Petroleum refining and ethanol products: the activity "petroleum refining and ethanol products" recorded a 0.02% change in April 2014 in relation to March, keeping the positive trend recorded since 2013. The result, however, is more moderate after the greatest monthly change of the sector recorded in January. In the year, the sector accumulates 5.47%, very much due to the 4.51% change in the indicator in the first month of the year.

The four products in the three estimated indicators (MoM, annual change, month against the same month a year ago) for April were the same: "diesel fuel and other fuel oils”, " kerosene, ethyl alcohol (anhydrous or hydrated) and naphthas”. However, between March and April, differently from the other indicators, there was decrease in the level of the prices of kerosene and alcohol. All the other influences were positive.

Other chemicals: the chemical industry recorded a change of –1.67% in relation to March - the second negative change after the upward trend in the first months of the year. The indicator of the last twelve months, after accelerating in the December/February period in 2013, slowed down since then, reaching 5.82% in April 2014 over April 2013. In the year, the sector accumulates 3.04%.

April's analysis shows the evolution of the price levels in the sector. The four highlights in the monthly indicator have registered a negative influence, and three out of these four, in the year, also registered an inferior level. One of them, "NPK fertilizer", persists with lower results in the twelve-month indicator. The lower pressure of naphtha in the international market caused downfalls in some related products of the sector of chemicals, both for April and for the first quarter.

Basic metals: with the 0.04% rate seen between March and April, the prices of the basic metals sector accumulated, up to April 2014, a positive change of 4.88% and, as a result, in the comparison with April 2013, they were 8.04% higher than those of the same month of the previous year. In the M/M_-12 comparison, it is the lowest result of 2014.

Out of the four products standing out in terms of influence ("carbon steel ingots, blocks, billets and plates", "thick carbon steel plates, uncoated", "copper and copper alloy bars, profiles and rebars" and "unwrought non-alloy aluminum"). "Thick plates ..." and "bars, profiles..." also came up as those with the greatest changes, but the first item with a positive change and the second, with a negative one. The total influence encompassing the four products was – 0.35 p.p. (0.04%).

Motor vehicles: the manufacturing of Motor vehicles posted a change of 0.24% in April, taking the cumulative index of 2014 to 1.81%. Considering the last 12 months (M/M_-12), the change stayed at 3.67%.

The greatest impacts of the month were “tractor trucks for trailers and semi-trailers” and “diesel and semidiesel engines for trucks and buses”, with positive results, and “engine pieces for motor vehicles” and “diesel truck with load capacity above 5t”, with negative results. Together, these products represented 0.05 of April's result.

The rise in the cumulative index of the year resulted from the products "gasoline, ethanol or biofuel passenger cars, of any power output", "tractor trucks for trailers and semi- trailers", and "gear boxes for motor vehicles". The product “engine pieces for motor vehicles" participated in the opposite way, with a negative result.

In relation to the last 12 months, the product "gasoline, ethanol or biofuel passenger car, of any power "and "tractor truck for trailers and semi-trailers" stood out with a positive result, and the products "engine pieces for motor vehicles” and "diesel truck with loading capacity above 5t" with a negative result.

Other transportation equipment: the manufacture of Other Transportation Equipment registered negative change of 2.73% in the month of April. This result placed it among the four activities that most influenced this month's IPP. This is also the lowest result of all series of the activity MoM. This is a lower result than that of October/2013 (-2.28%), which was, up to then, the lowest of the whole series.

In April the activity was strongly influenced by the dollar decrease, since the weight of the exports in this sector is very significant. As a result, the cumulative indicator of the year in 2014 stayed at -2.04% and the cumulative index over the last 12 months (M/M_-12), at 7.85%. The products “airplanes” and “motorcycles with engine displacement of more than 50cm3” had negative impact in the MoM indicator. Conversely, “Manufacture or maintenance of ships" recorded a positive result in April.