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Producer Price Index (IPP) of August was 0.97%

September 25, 2015 09h33 AM | Last Updated: February 02, 2018 12h59 PM

 

Period
Rate
August 2015
0.97%
July 2015
0.72%
August 2014
0.44%
Cumulative in the year
4,.3%
Cumulative in 12 months
7.27%

In August 2015, the prices of industry changed by 0.97% versus that of the previous month, with a result below that of July (0.72%). The cumulative indicator in the year was 4.63% in August, versus 3.63% in July. The cumulative indicator in 12 months was 7.27%, versus 6.71% in July. Among the 24 mining and quarrying activities, 20 recorded positive price changes.

The Producer Price Index (IPP) measures the evolution of “factory gate” prices, excluded taxes or freight, for 23 manufacturing industry sectors. From this month on, IBGE will release the Price Index for Mining and Manufacturing Industry, thus increasing the scope of the survey, with a new time series starting in January 2014. Information by major economic categories, that is, capital, intermediate ,and durable and non-durable consumer goods will also be available.

The complete IPP survey can be accessed here.

In August, the price change of General Industry in relation to the previous month was 0.97%, a result above the average recorded in July (0.72%). In the same comparison, 20 of the 24 actvities surveyed had positive changes, versus 17 activities in the previous month.

The four biggest changes in August were recorded by the following activities: mining and quarrying industry (-8.70%), other transportation equipment (6.83%), tobacco (6.67%) and pulp and paper (3.96%). As for influence, in percentage points (p.p) and in relation to the previous month, the highlights were food products (0.32 p.p), mining and quarrying industry (-0.29 p.p), other transportation equipment (0.16 p. p) and pulp and paper (0.15 percentage points).

Tabela 2
Índices de Preços ao Produtor, segundo as Seções e Atividades de Indústria (%) - 2015


 
Sections and activities Change
M/M-1 Cumulative in the year M/M-12
Jun
Jul
Aug
Jun
Jul
Aug
Jun
Jul
Aug
General Industry
0.47
0.72
0.97
2.89
3.63
4.63
5.35
6.71
7.27
B - Mining and quarrying industry
4.39
1.86
-8.70
0.55
2.42
-6.50
-22.00
-14.68
-21.60
C - Manufacturing industry
0.34
0.68
1.29
2.97
3.67
5.01
6.60
7.63
8.49
     10 - Manufacture of food products
0.13
1.28
1.68
1.15
2.44
4.17
3.91
6.53
7.57
     11 - Manufacture of beverages
-0.16
-0.04
0.63
0.75
0.71
1.35
12.65
12.46
11.07
     12 - Manufacture of tobacco products
0.54
2.63
6.67
12.05
15.00
22.66
25.27
29.01
35.90
     13 - Manufacture of textiles
0.54
0.24
0.18
7.20
7.46
7.65
6.65
7.87
7.64
     14 - Manufacture of wearing apparel and accessories  
-0.98
-0.76
0.88
3.21
2,42
3.32
4.81
4.92
6.05
     15 - Preparação de couros e fabricação de
     artefatos de couro, artigos para viagem
     e calçados
0.25
1.64
2.08
6.63
8.38
10.63
13.32
16.80
17.30
     16 - Fabricação de produtos de madeira
0.71
-0.57
3.22
10.21
9.58
13.11
20.09
20.56
22.53
     17 - Fabricação de celulose, papel e
     produtos de papel
2.74
1.14
3.96
11.26
12.53
16.99
21.16
22.21
25.95
     18 - Impressão e reprodução de gravações
0.67
0.32
2.95
5.51
5.85
8.97
1.82
3.55
8.81
     19 - Fabricação de coque, de produtos
     derivados do petróleo e de
     biocombustíveis
0.42
1.42
-0.38
-2.61
-1.22
-1.60
0.50
1.41
1.48
     20B - Fabricação de sabões, detergentes,
     produtosde limpeza e artigos de
     perfumaria
0.15
1.21
0,22
4,80
6,07
6,30
8,11
9,61
8,83
     20C - Fabricação de outros produtos químicos
4,43
0,36
1,07
7,38
7,77
8,92
10,46
11,04
11,17
     21 - Fabricação de produtos farmoquímicos e
     farmacêuticos
-1,26
-0,64
-0,04
1,50
0,85
0,81
-1,26
-1,38
-1,23
     22 - Fabricação de produtos de borracha
     e de material plástico
0,55
1,37
0,36
2,93
4,34
4,72
2,42
3,87
5,29
     23 - Fabricação de produtos de minerais
     não-metálicos
-0,66
0,16
0,76
3,11
3,27
4,06
2,87
2,44
3,48
     24 - Metalurgia
-3,56
-0,59
1,21
-1,17
-1,76
-0,56
2,79
2,46
3,34
     25 - Fabricação de produtos de metal, exceto
     máquinas e equipamentos
0.84
-0.35
2.15
6.50
6.12
8.40
9.93
9.88
11.65
     26 - Fabricação de equipamentos de
     informática, produtos eletrônicos
     e ópticos
-2.67
0.53
-0.26
-7.48
-6.99
-7.24
-5.66
-4.80
-6.19
     27 - Fabricação de máquinas, aparelhos
     e materiais elétricos
-0.58
0.60
0.74
6.82
7.46
8.25
10.42
11.27
11.55
     28 - Fabricação de máquinas e equipamentos
0.96
0.84
1.27
4.52
5.40
674
5.14
6.06
7.77
     29 - Fabricação de veículos
     automotores, reboques e carrocerias
-0.25
0.22
0.93
3.32
3.54
4.50
8.27
8.27
8.58
     30 - Fabricação de outros equipamentos
     de transporte, exceto veículos automotores
1.11
2.38
6.83
13.85
16.56
24.52
27.22
30.41
36.74
     31 - Fabricação de móveis
0.22
-0.13
1.61
5.93
5.79
7.50
10.97
10.38
11.12

 

The cumulative indicator in the year reached 4.63%, versus 3.63% in July. The activities which recorded the biggest cumulative changes were: other transportation equipment (24.52%), tobacco (22.66%), pulp and paper (16.99%) e wood (13.11%). The most influencing sectors in this comparison were: other chemicals (0.93 p.p), food products (0.79 p.p), pulp and paper (0.58 p.p) and other transportation equipment (0.52percentage points).

The cumulative indicator in 12 months reached 7.27 %, versus 6.71% in July. The biggest price changes were those of other transportation equipment (36.74%), tobacco (35.90%), pulp and paper (25.95%) and wood (22.53%). The most influential sectors in terms of the cumulative index were: food products (1.43 p.p.), other chemicals (1.17 p.p), motor vehicles (0.91 p.p) and mining and quarrying industry (-0.88 p.p).

The changes of the major economic categories, in relation to the previous month were: 2.44% in capital goods; 0.81% in intermediate goods; and 0.86% in consumer goods, being 0.78% in durable consumer goods and 0.88% in semi-durable and non-durable consumer goods.

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The influence of major economic categories in the result of industry (0.97%) was: 0.21 p.p in capital goods, 046 p.p in intermediate goods and 0.29 p.p in consumer goods, with 0.06p. p in semidurable and non-durable consumer goods and 0.23 p.p in durable consumer goods.

In the year, industry had cumulative change of 4.63%, being 9.46% in capital goods (with influence of 0.80 p. p). 4.58% in intermediate goods (2.61 p.p) and 3.53% in consumer goods (1.22 p.p). In this last example ,the increase was influenced by 0.41 p.p in products of durable consumer goods and 0.81 p.p by semi-durable and non-durable consumer goods.

In 12 months, the main economic categories had the following cumulative results: capital goods, 14.47% (1.20p .p); intermediate goods, 6.39% (3.67 p.p); and consumer goods, 7.01% (2.40 p.p), with the influence of durable consumer goods as 0.69 p.p and semidurable and non-durable consumer goods as 1.72 p.p.

Twenty of the 24 activities recorded positive price changes

See below the highlights in August, with their respective changes in each of the comparisons:

Mining and quarrying: in August, the prices of mining and quarrying industries decreased, on the average, 8.70%, the fourth biggest negative rate in the series which started in January 2014. As a result of August, the cumulative index in the year reached -6.50% and that of 12 months, to -21.60%. In the cumulative series in 12 months, all the results are negative.

Food products: in August 2015, the prices of food products changed, on average, 1.68%, the second biggest results in the year (1.70% in March 2015). As a consequence, up to August, there was cumulative change of 4.17%, a result which was only recently overcome by THAT of December 2013 (6.80%). The month-on-month comparison, in August, the result was 7.57%, the biggest result observed between May 2014 (9.20%) and this one.

The most influential items were:  'frozen beef', 'residue from soybean extraction' and 'concentrated orange juice' and 'refined soybean oil', all of them with positive price changes. These four items accounted for 1.17 percentage points (out of the 1.68% change). 

With the currency devaluation (approximately 9.0% in August, 33.0% throughout 2015 and 55.0% in twelve months), export products are among the most influential in the several comparisons.  In this respect, we can justify the positive influence of 'concentrated orange juice', 'frozen beef' and even 'fresh or cooled beef' and soybean derivatives.  Other factors also influenced prices, for example, problems with the supply of American soybeans, the current period between harvests of soybeans and the return of Brazilian soybeans to the Chinese market.

Pulp and Paper: the change of prices in August, of 3.96%, is the fourth biggest one in the series, reaching its peak in March 2015 (4.94%).  Among manufacturing industries the sector recorded the third biggest price change in the month; the third biggest cumulative increase in the year (16.99%) and the third biggest cumulative increase (25.95%) in 12 months.  Compared with the July result (1.14%), the August index had an increase of 2.82 p.p.

With the result of August, industry of pulp and paper contributed with 0.15 p.p in the increase of 1.25% of manufacturing industries, being second to 'Food Products' only (0.32 p.p) and 'Other Transportation Equipment' (0.16 p.p).

The most influential products to the rise in August were 'pulp', 'kraft paper for packaging, uncoated', 'paper for writing, printing and related uses, uncoated' and 'diapers'.  Together, from the change of 3.96%, these products accounted for an influence of 3.84 p.p. 

Other chemicals: the chemical industry recorded increase for the third consecutive month, of 1.07% in this case; with 8.92% cumulative in the year (biggest rate in this kind of comparison throughout the IPP series) and 11.17% in 12 months.

The industry of basic and intermediate petrochemical industry for plasticizers, resins and fibers relates to international values and the prices of naphta, which recorded increase between December 2014 and March 2015, but got to recover in the last few months.  It is also worth mentioning inorganic chemicals, mainly those related to the production of manure and fertilizerrs, which tend to follow international prices.

Besides the rise of naphtha in the last quarter, the sector recorded rise of costs associated to energy, to the purchase of raw material and the currency (dollar depreciation in comparison with the American currency by 55.0% in the last 12 months).

The four most influential products in the month versus the immediately previous one accounted for 0.26 p.p in the result of 1.07%, that is, the other 28 products contributed with 0.81 p.p.

Motor vehicles: in August, there was change of 0.93%, the second biggest one in the year (1.33% in January).As a consequence, the sector had a cumulative result of 4.50% in the year and of 8.58% in the last 12 months. In this last case, it is the second biggest change in the series (8.61% in May 2015), which started in December 2010).  This sector accounted for the third biggest contribution (0.91 p.p in 7.27%) over the cumulative index in 12 months among all the activities of industry.

Two products were highlights in terms of change and influence:  'gearbox for motor vehicles' and 'chassis with engine for buses or for trucks'.  In terms of influences, the other two are:  flex-fuel, gasoline or ethanol passenger car with any engine power output and 'pieces for the engines of motor vehicles'.  Together, the four products influenced the result of 0.93% by 0.74 p.p.

Other Transportation : in August 2015, the prices of the sector rose 6.83% in relation to the previous month, with influence, to a great extent, of the currency rate.

In August, the sector recorded increase of prices for all the indexes analyzed (month versus previous month, cumulative in the year and cumulative in the last twelve months) and its results were the highest in terms of cumulative indexes in the year (24.52%) and twelve months (36.74%) since the start of the series, in December 2009.