In March of 2015, the Producer Price Index (IPP) changed 1.93% compared with the previous month; a higher result than the one achieved in February (0.26%). Moreover, in the month/previous month comparison, it is the highest change of the time series of the survey initiated in January 2010. The cumulative indicator of 2015 was 2.22% in March, versus 0,29% in February. The cumulative rate in 12 months was 4.94% 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

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

19 of the 23 activities surveyed recorded prices rises

In March 2015, 19 of the 23 activities registered positive price changes, against 17 in the previous month. The four major changes in March/February were: other transportation equipment (7.86%), tobacco (5.58%), other chemical products (5.56%) and paper and pulp (4.91%). The greatest influence, or impact, in March/February was exerted by other chemical products (0.57 p.p.), food products (0.35 p.p.), basic metals (0.21 p.p.) and other transportation equipment (0.18 p.p.).

The cumulative indicator of 2015 reached 2.22%, in March/15, whereas in February/15, it was 0.29%. As a result, over the first three months of the year 2015, the cumulative indicator has already surpassed the cumulative rate up to September 2014 (2.07%). The highest percent changes in the cumulative index in the year in March/15 were: other transportation equipment (14.14%), tobacco (13.62%), pulp and paper (8.85%) and wood (7.82%). In this indicator, the sectors of highest influence were: oil refining and ethanol production (-0.50 p.p.), food products (-0.49 p.p.), basic metals (0.32 p.p.) and paper and pulp (0.31 p. p.).

Compared to March 2015/ March 2014 (cumulative in 12 months), the price change was of 4.94%, versus 2.74% in February. In this comparison, the rate of March/15 is the biggest one since June de 2014 (5.01%). The four major price changes occurred in other transportation equipment (24.77%), tobacco (22.66%), paper and pulp (16.13%) and leather articles and footwear (14.80%). The major influences came from food products (0.91 p.p.), motor vehicles (0.86 p.p.), basic metals (0.72 p.p.) and paper and pulp (0.54 p.p.).

In March 2015, the prices of food products changed, on average, 1.77% - the highest result since August 2013 (3.20%). As a result, the sector had a cumulative change of 2.51% - a positive rate, which did not occur in the month of March since 2012 (0.03%). In the comparison between March 2015 and March 2014, prices this year were 4.57% higher than those in the same month a year ago. In this kind of comparison, this is the highest result since June 2014 (6.56%). Two products were highlights both in terms of change and of influence: "sterilized milk / UHT / Long Life" and "fresh or cooled beef". However, while the impact of the first one was positive, the second one had a negative impact. The other two products that stood out in terms of influence were "residue of soybean extraction" and "crystallized sugar", both with positive price changes, in the comparison between March 2015/February 2015. Except for "sterilized milk / UHT / Long Life", the three others belong to the group of those with the greatest contributions to the sector's rate.   The impact of the four products was 0.70 p.p. (in 1.77%). A decreased supply, in the case of milk and sugar, and the exchange rate, coupled with a higher demand, in the case of soybeans, explain the price dynamics of these products. In the case of meat, despite de exchange rate, the enterprises reported a decreased foreign demand, which would account for the drop seen in the price of the product.

The products in the sector of paper and pulp recorded in March 2015 an average increase of producer prices of 4.91%, in relation to February/2015 (2.84%). The change in March/2015 was the highest since the beginning of the survey in January 2010. The prices in this sector were influenced by the currency depreciation occurred in the last three months. From January/2015 up to March/2015, these products' prices accumulated a rise of 8.85%. In the last 12 months, the cumulative increase of producer prices in the sector was 16.13%. A year ago, in March 2014, the manufacturing prices of pulp, paper and paper products had a negative change of -0.31%. The four products that mostly influenced the increase of 4.91% of the last month were "pulp", "paper for writing, printing and other graphic purposes, uncoated with inorganic material", "Kraft paper for packaging, uncoated" and "notebooks". These four products were responsible for 4.72 percentage points in the overall change of the sector.

The sector of petroleum refining and ethanol products, with the result of -0.66% observed in March/2015, the third consecutive negative result in this comparison, accumulated -4.43% of change. It is worth mentioning that, in the cumulative rate, the three consecutive negative changes occurred just in 2012 (January, -0.58%; February, -0.78%; and March, -0.42%), in a series that, besides these points, had only another negative one (April 2010, -0.46%). In the cumulative index over twelve months, March's result was of -3.22%, the second negative result in a row, in a series (initiated in December 2010) with only another negative point (April 2012, -0.39%). The highlights, both in terms of change and of influence, lies with the same products: "basic oil fuels", "aviation kerosene", "ethyl alcohol (anhydrous or hydrated)" and "motor gasoline". The changes of these products' prices, except for "aviation kerosene", were negative, and, altogether, their influence was of – 0.45 p.p. in – 0.66%. Petroleum products had price changes according to the international context and, in the case of ethanol, high stock levels explain the drop seen in the month.

In March/2015, prices of other chemical products changed 5.56%, first positive result after three consecutive negative ones. It is worth saying that this rate is the third highest among all manufacturing industries, below other transportation equipment (7.86%) and tobacco (5.58%). With this change, the cumulative rate in the year offset the negative result in February/2015 (-4.84%) to a positive one (0.45%). Even so, when compared with the same month of 2014, current prices are 1.07% lower. Of the four products on the top of the highest influences, three are among the four major contribution to the sector result: "NPK fertilizers or manure", "herbicides for agricultural purposes" and "ethylene (ethane), unsaturated" - the other product is "polypropylene (PP)". The eight products that stood out had positive price changes, and the four of highest influence added up to 3.10 p.p. (in 5.56%). The Real devaluation and the price increase of electricity are in the base of the rises seen in March.

The producer price index of the sector of basic metals was the third greatest influence in the total price increase of the industry in March/2015, compared with February, in the cumulative index in 2015, and in the cumulative index over the last 12 months. In March, the sector had an increase of 2.55% in relation to February/2015, whose rise over January had been 0.65%. As a result, in the first quarter, the sector had a 3.91% cumulative increase, and over the last 12 months, 9.19%. The products from Basic metals with the highest change in March/2015 were “aluminum plates and strips in other shapes”; “unwrought non-alloy aluminum”; “cooper and copper alloy bars, profiles and rebars”; and “unwrought aluminum alloy”. The last three products above, plus “carbon steel ingots, blocks, billets and plates”, due to their great weight in the activity, exerted the highest influence in the increase of the sector's prices, with 2.51 percentage points. These same products influenced the total cumulative change over the last 12 months, in the sector. Considering just the period from January to March/2015, the products of greatest influence were "unwrought non-alloy aluminum"; "unwrought aluminum alloys"; and "carbon steel ingots, blocks, rods or plates", with positive changes, and "seam steel pipes", with negative changes.

The change of 0.47% seen in the sector of motor vehicles is the lowest in the year up to the moment and, with it, the cumulative index reached 2.63%. In relation to the cumulative index in twelve months, March's rate (7.93%) is the highest in the series, having been preceded by a sequence containing the seven highest in this comparison. The beginning of these seven points was September 2014, a period when occurred the greatest monthly change (1.69%). Among the highlights in terms of change and influence, just "engine pieces for motor vehicles" belong to the two lists. The combined influence of these products' changes and of the changes in "gasoline, ethanol or biofuel passenger cars, of any power output" (the only negative change among the highest influences), "tractor trucks for trailers and semitrailers" and "bodies for buses" was of 0.30 p.p. (in 0.47%). It is worth mentioning that, of the four products, just "bodies for buses" is not included among the highest contributors to the calculation of the sectoral index and the increase seen is linked with a specific negotiation, occurred this month for more than one producing enterprise.

In March 2015, the prices of the sector of other transportation equipment recorded a positive change of 7.86% over the previous month. The result in this indicator is the greatest seen in the manufacturing industry, with the price changes in the activity exerting the fourth greatest influence in the overall indicator (0.18 p.p.). The cumulative rate in the year achieved 14.14% in March, again the highest result observed in the manufacturing industry. The positive rate this month is the eighth consecutive seen in the sector - in this period the prices increased 27.7%. In the comparison with the same month of 2014, there is a positive change of 24.77% in the prices of March 2015, a result which is also the highest one seen in the manufacturing industry. Both the monthly indicator and the long-term indicators demonstrate compliance with the variation of the exchange rate (R$/US$) throughout time. In this matter, the highlight is the impact of the exchange rate over "airplanes", a product with the greatest contribution to the composition of the sector's index.