In April 2016, the prices of the general industry changed, on average, -0.35% in comparison with the previous month. This result is above March’s (-1.20%). The cumulative index in the year was –1.50% in April, against –1.15% in March. The cumulative result in 12 months was of 4.66%, against 5.26% in March. Among the 24 activities of the mining and quarrying and manufacturing industries, 11 recorded positive price changes, against eight in the previous month.

The Producer Price Index (IPP) of the Mining and Quarrying Industries and of the Manufacturing Industries measures the evolution of products’ prices “at factory gate”, without taxes and freight, and it encompasses information by major economic activities, i. e., capital goods, intermediate goods and consumer (durable and non-durable). The complete publication of the IPP can be accessed here.

                                                           Table1
Producer Price Index, by Mining and Quarrying and Manufacturing Industry (Industry Overall) and Sections - Last three months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria.

In April 2016, the price change of -0.35% against March had the following impact in the Major Economic Categories: -1.29% in capital goods; -0.11% in intermediate goods; and -0.49% in consumer goods (-0.62% in consumer goods durable and -0.45% in semi-and non-durable consumer goods).

The influence of the major economic categories was of -0.11 p.p. for capital goods, -0.06 p.p. for intermediate goods and -0.17 p.p. for consumer goods. In the case of consumer goods, -0.12 p.p. was due to price changes observed in semi and non-durable consumer goods and -0.05 p.p. due to durable consumer goods.

As to the cumulative index over the year, price changes of industry had reached until April, a -1.50% change: -0.32% of capital goods (with influence of -0.03 p.p.), -3.11% of intermediate goods (-1.76 p.p.) and 0.84% of consumer goods (0.29 p.p.). In the latter, the increase was influenced by durable consumer goods (0.10 p.p.) and by “semi and non-durable consumer goods” (0.19 p.p.).

In the cumulative index over 12 months, the price change in industry reached, in April, 4.66%, with the following changes: capital goods, 7.75% (0.66 p.p.); intermediate goods, 2.33% (1.33 p.p.); and consumer goods, 7.74% (2.66 p.p.). The influence of durable consumer goods was of 0.30 p.p. and of semi-and non-durable consumer goods,  2.36 p.p.

Table 4
Producer Price Index, by Mining and Quarrying ansd Manufacturing Industries (Industry Overall) and Major Economic Categories - Last Three Months

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria.

In April/2016, 11 out of the 24 activities registered positive price changes in relation to the previous month, against eight in the month prior to that. The four highest changes occurred among mining and quarrying industries (13.35%), pharmaceuticals (3.76%), tobacco (-3.08%) and printing (2.96%). The highest influences came from mining and quarrying industries (-0.34 p.p.), other chemical products (-0.28 p.p.), oil refining and ethanol products (-0.12 p.p.) and motor vehicles (-0.09 p.p.).

The cumulative indicator in the year reached -1.50% in April/2016, against -1.15% in March/2016. Among the activities which recorded the main percentage changes in terms of the cumulative indicator, the highlights were: other chemicals (-8.94%), wearing apparel and accessories (5.52%), oil refining and ethanol products (-5.33%) and tobacco (-4.99%). The sectors to exert the greatest influence were other chemicals (-0.96 p. p.), oil refining and ethanol products (-0.56 p.p.), textiles (-0.13 p.p.) and fabricated metal products (0.12 p.p.).

Considering the cumulative index in 12 months, price changes in April 2016 were 4.66%, against 5.26% in March/2016. The four biggest changes occurred in toiletries, soaps and cleaning preparations (15.18%), other transportation equipment (14.02%), tobacco (13.13%) and food (12.66%). Considering this indicator, the main contributions came from: food (2.40 p.p.), motor vehicles (0.48 p.p.), basic metals (-0.40 p.p.) and other transportation equipment (0.32 p.p.).

Mining and quarrying: in April, the prices in mining and quarrying industries recorded a change of 13.35% in relation to March. In the cumulative index in the year, the sector presented a positive change of 2.88% and, in 12 months, there was a decrease of 6.57%.

The monthly positive change of prices in the sector had the highest influence (0.34 p.p.) over the overall industry. The high seen in the prices of the activity was mainly due to the price of iron ores in the international market. “Crude petroleum oil” has also influenced positively the rise in the monthly prices of the activity.

Food: in April, against March, the second negative result of the series in 2016 was registered:  -0.10%. As a result, the cumulative index, which reached 1.95% in February, went back to 0.22%. In the cumulative index in 12 months, the result of 12.66% was higher than March's (11.92%).

Among the products that stood out in terms of change, just one, 'frozen beef', had a negative change. However, among the highlights in terms of influence, just one had a positive change, 'residue of soybean extraction'.

The four highest influences ('residue of soybean extraction', 'crystallized sugar', 'concentrated orange juice' and 'fresh or cooled beef') accounted for -0.31 p.p. of the change of -0.10%. This means that the influence of the other 39 products was positive, which prevented an even bigger price decrease in the activity. 

Paper and pulp: the sector presented, in April, a decrease of 0.86% in relation to March, the third consecutive fall in the year and the sixth fall in the sector since April 2015. As a result, the sector accumulated a decrease of 3.41% in 2016, together with a positive change of 8.56% in the last 12 months.

The four highest influences in the sector in April were: 'pulp', 'writing, printing and other graphic purpose paper, uncoated with inorganic matter', 'notebooks' and “uncoated kraft paper for packaging'. These four products were responsible for -0.98 p.p. of the sector's change of -0.86%.

Oil refining and ethanol products: as it been occurring since December 2015 (-0.17%), the monthly change was negative in April (-1.53%) - the second biggest negative point in this period of time, in which February's result stands out (-3.10%). The cumulative index in the year reached, thus, a change of -5.33%, a result that makes the activity a highlight both in terms of influence and change among all the activities surveyed. In the cumulative index in 12 months, on its turn, April’s prices in 2016 were 1.70% higher than those of April 2015.

The biggest highlight, both in change and in influence, occurred due to the price decrease in the product 'ethyl alcohol (anhydrous or hydrated)', associated with sugarcane crops. In terms of influence in the month, this was the only negative result, but, even so, the four greatest impacts ('diesel fuel and other fuel oils', 'motor gasoline', 'ethyl alcohol and naphthas)' accounted for -1.07 p.p. of the change of -1.53%.

Other chemicals: the chemical industry recorded in April a negative change of 2.78% (the second greatest fall in the sector since February 2015, in this kind of comparison), which generated a cumulative change of prices in the year of -8.94% and of -1.16% in 12 months.

The four products of highest influence in the month (“superphosphates”, “manure and NPK fertilizers”, “non-saturated ethylene (ethane)” and “herbicides for agricultural purposes”)  represented -2.39 p.p. of the -2.78% result; i. e., the other 28 products contributed with – 0.39 p.p.

Basic metals: comparing the prices of the sector in April 2016 against March 2016, there was a negative price change of 1.18% - the third consecutive drop. So the sector accumulated in the year a drop of 0.91% and, in the last 12 months, a negative change of prices of 5.11% (the highest decrease in this kind of comparison since August 2011).

The four products of greatest weigh in this activity recorded the biggest influences in the month: “ingots, blocks, billets and carbon steel plates” and “unwrought non-alloy aluminum” with negative changes/influenced in the month and “hot-rolled carbon steel coil, uncoated” and “cold-rolled steel carbon coils, uncoated” with positive changes/influences.

These products together represented -0.80 p.p. of the monthly change, i. e., the other 18 products of the sector had an influence of -0.38 p.p.

Fabricated metal products: the sector presented a change of -0.80% in relation to March 2016. In the cumulative index in 12 months, there was a positive change of 9.23%, above the average seen in the overall industry, 4.66%.

In the first four months of 2016, the sector's prices accumulated a 4.02% change. This cumulative change in the activity prices from January to April 2016 represented the main positive influence (0.12 p.p.) on the cumulative indicator in the year of the general industry.

The products with a higher influence on the cumulative positive change in the year by activity were: “interchangeable tools for manual machines or machine tools', 'aluminum cans for packaging' and 'shaving devices of non-replaceable blades”.

Motor vehicles: the result seen in the products’ price which comprise the activity makes it a highlight, in terms of influence, both in the indicator that compares April against March and in the cumulative index accumulated in 12 months.

The change seen in April against March was of -0.83%, another negative change in a year that had only a positive one (January: 2.13%). As a result, the cumulative figure in the year stood at 0.91%. In the cumulative index in 12 months, the change was of 4.45%, standing out among the activities with the second highest positive influence, of 0.48 p.p. in 4.66%.

The four highlights in terms of influence in relation to the previous month had a negative change of prices, among them the highest weight in the sector’s result, 'flex-fuel, gasoline or ethanol passenger car with any engine power output”. The same product stands out in the cumulative index in 12 months, this time with a positive change. In January, there was a stronger increase of the product and, in April, the enterprises had discounts in the products with models which were to be replaced.

Other transportation equipment: in April 2016, there was a change of -2.76% in the sector's prices over the previous month. In the first four months of 2016, the activity accumulated a negative change of -4.30%.

In the cumulative index in 12 months, there was a positive change of 14.02% in the sector's prices - the second biggest change in this indicator among all the activities surveyed in the survey. The price change seen for the activity in relation to the same month a year ago had, in absolute terms, the fourth highest influence (0,32 p.p.) on the cumulative index in 12 months of the overall industry.