In July 2014, the Producer Price Index (IPP) changed, on the average, -0.29%, versus the result of the previous month, a lower figure than that of the comparison between June/14 and May/14 (-0.16%). The cumulative index of 2014 was 0.61% in July, versus 0.90% in June. Compared with the same month in 2013 (cumulative index in 12 months), prices rose by 3.45%, versus 5.01% in June.

IPP measures the evolution of “factory gate” prices, excluded taxes or freight, for 23 manufacturing industry sectors.  The complete publication is available at

www.ibge.gov.br/english/estatistica/indicadores/precos/ipp.

Six of the 23 activities surveyed recorded rise of prices

In July 2014, the prices of Manufacturing industry changed, on the average, -0.29% in relation to June. Versus the previous month, six of the 23 activities recorded positive price rises, versus 8 in the previous month. The four biggest changes observed in July took place among products encompassed by the following industrial subsectors: printing (-2.15%), footwear and leather articles (-1.38%), food (-1.18%) and wood (-0.96%). In terms of influence, in the comparison between July/2014 and June/2014 (-0.29%), the highlights were food (-0.23 percentage points), oil refining and ethanol production (0.06 percentage points), footwear and leather articles (-0.02 percentage points) and motor vehicles (0.02 percentage points).

The cumulative indicator in the year reached 0.61% in July. Among the activities which recorded the main percentage changes, the highlights were: basic metals (5.62%), manufacture of wearing apparel and accessories (4.70%), oil refining and ethanol production (4.01%) and wood (-3.95%). Considering this indicator, the most influential sectors were: food (-0.59 percentage points), oil refining and ethanol production (0.44 percentage points), basic metals (0.43 percentage points) and motor vehicles (0.23 percentage points).

The cumulative index in 12 months , the change of prices was 3.45%. The four main changes in prices were those of oil refining and ethanol production (8.93%), footwear and leather articles (7.76%), printing (-6.90%) e basic metals (6.01%). The main influences in this respect came fromoil refining and ethanol production (0.97 percentage points), food (0.52 percentage points), basic metals (0,47 p.p.) e motor vehicles (0.32 percentage points).

Food: in July 2014, the prices of this subsector food changed -1.18% in relation to June, being this one the lowest rate since February 2013 (-2.58%) in this type of comparison. As a result, the cumulative figure in 2014 reached -2.88%. In comparison with July 2013, prices this year rose 2.62%, the third lowest result of the series (1.25% in February 2012 and 2.18% in January 2012) for this indicator.

In terms of the highlights in the July/June 2014 comparison, only refined soybean oil is mentioned both in terms of change and of importance. Among the products accounting for the most significant changes, two recorded positive results ("ice cream, popsicles and edible refrigerated products" and "fresh or refrigerated pork"), and other two, negative ones ("refined soybean oil" and "yogurt"). The most influential products are either related to the soybean production chain ("residue from soybean extraction", "refined soybean oil" and "crude degummed soybean oil") or to sugarcane chain ("crystallized sugar"). In this case, now it is still harvesting time, price changes are negative. These four items influenced the rate of -1.18% by 1.13 percentage points.

Footwear and leather articles: the change recorded in July was -1.38%, the second biggest negative change in the month and the highest negative rate of the sector since the beginning of the series, in January 2010. In spite of the negative change in the month, the cumulative index also remained positive (1.99%), and this activity still represents a significant positive change in the last 12 months (7.76%). Among the six products evaluated, the most influential on the monthly index were "female leather footwear, except sneakers" and "sneakers made of cloth or of artificial material, assembled", "male leather footwear, except sneakers" and "cattle and horse rawhide parched or prepared after tanning or drying", which, together, accounted for -1.47 percentage points of the -1.38% rate.

Oil refining and ethanol production: the activity recorded change of 0.51% in July 2014 in relation to June, the first positive result after two months of negative rates. In the year, the sector presents cumulative figure of 4.01%, whereas the indicator for the last 12 months recorded 8.93%.

In relation to products, the highlights for the monthly indicator are "ethyl alcohol (anhydrous or hydrated)", "naphtha", "aviation kerosene" and "diesel and other fuel oils", all of them recording positive changes for the month of July. These products account for the 0.46 percentage points out of the 0.51% indicator overall, which points to concentration of increase in the main changes, especially of diesel and naphtha. The latter, after a long period facing decrease, had its prices, once again, affected by the international market, mainly due to the effects of crises in Syria and in other countries of the Middle East.

Basic metalsThe result of July 2014 was -0.27%, which caused the cumulative change in the last 12 months to reach 6.01% and in the change in the month, 5.62% (the second biggest result of this index in the beginning of the series).

Two products were the highlights in terms of changes/influences: "uncoated cold-rolled steel carbon coils", and "uncoated thick steel carbon plates". In relation to changes in the month, positive results were recorded by "alloy aluminum in raw form", in accordance with international prices and "stainless steel coils or plates, including stripes". In relation to other relevant products, now as an influence in the month, "hot-rolled steel carbon coils, uncoated", with a negative result and "carbon steel ingots, blocks, rods or plates", with a positive result. In the monthly indicator of July, the four products with the main influences caused an impact of -1.08 percentage points in the change of -0.27%, whereas the other products had positive participation of 0.74 percentage points.

Motor vehicles: in July, the prices of this activity recorded, on the average, change of 0.22% in relation to the previous month. As a result, the cumulative figure in the year reached 2.14%. In relation to the last 12 months, the activity recorded 2.88%.

The products accounting for the most relevant contributions to the monthly index were "gasoline, alcohol or biofuels passenger cars, of any engine power", " diesel trucks with a capacity above 5t" and "pieces for the engine of motor vehicles", with positive changes. Also in this category, the item "tractor trucks for trailers and semi-trailers" presented a negative change. Together, these four products account for 0.24 percentage points of the July indicator.