The Producer Price Index (IPP) changed, on average, 0.31% in April 2015 when compared with the previous month, below the rate registered in March (1.86%). The cumulative index in 2015 stayed at 2.47% in April, against 2.15% in March. When compared with the same month of 2014 - cumulative in 12 months -, the prices rose 5.63% against 4.87% 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.

14 of 23 activities surveyed increase prices

Compared with March, 14 out of the 23 activities rose their prices in April 2015, against 21 in the previous month The four highest changes recorded in April involved products from the following industrial activities: other chemicals (3.50%), optical, electronic and computer equipment (-3.14%), fabricated metal products (2.83%) and tobacco (-2.41%). In terms of influence, the highlights were other chemicals (0.37 p.p.), food products (-0.18 p.p.), oil refining and ethanol products (0.12 p.p.) and basic metals (-0.09 p.p.).

The cumulative index in the year reached 2.47%, against 2.15% in March 2015. Among the activities that posted the highest changes in the cumulative index in the year in April 2015, the highlights were: other transportation equipment (12.15%), tobacco (10.88%), wood (8.57%) and pulp and paper (7.72%). As to the influence, the sectors that stood out were: oil refining and ethanol products (-0.38 p.p.), other chemicals (0.32 p.p.), motor vehicles (0.30 p.p.) and food products (0.30 p.p.).

The cumulative price change in 12 months was 5.63%, against 4.87% in March. The four highest price changes were reported in other transportation equipment (26.03%), tobacco (23.18%), pulp and paper (17.46%) and wood (16.50%), whereas the highest influences came from motor vehicles (0.85 p.p.), food products (0.80 p.p.), basic metals (0.65 p.p.) and paper and pulp (0.58 p.p.).

Food products: in April 2015, the prices of the food sector changed -0.91% in relation to March, exerting the highest negative impact (-0.18 p.p.) on the overall figure. The cumulative figure until April stayed at 1.51% and the cumulative figure in 12 months, 4.02%. In terms of influence, the products that stood out compared with the previous month were "frozen poultry meat or giblets", "residue of soybean oil extraction", "refined soybean oil" and "crystallized sugar", which impacted -0.89 p.p. in the -0.91% variation. The fall in the price of "frozen poultry meat or giblets" was due to the cooling of the internal market. The other drops were explained by the harvest period - especially in the case of soybeans -, but also by the appreciation of the real in this period.

Pulp and paper: this sector dropped -1.07% in April, against a positive index of 4.94% in March, registering a cumulative rise of 7.72% in the first four months of 2015. As to the cumulative indicator in the last 12 months, the prices increased 17.46%. The influence of this sector on the overall index was -0.04 p.p., highlighted by "folding boxes and cardboards made of paperboard or cardboard, printed or not"; "notebooks"; and "wavy or corrugated paperboard boxes", which, altogether, accounted for -1.20 p.p. of the result of this activity.

Oil refining and ethanol products: the prices changed, on average, 1.14% between March and April, recording the first positive figure in the year. As a result, the cumulative index in the year reached -3.34%, after hitting -4.43% in March. Compared with April 2014, the prices were 2.13% lower. In April, this sector exerted the second highest positive influence (0.12 p.p.) on the result of the manufacturing industry. The positive changes reported in this sector came from petroleum products - "naphtha", " aviation kerosene" and "motor gasoline" -, partly offset by the price of "ethyl alcohol (anhydrous or hydrated)", whose negative price variation was in accordance with the harvest period of sugarcane. On their turn, the prices of petroleum products followed the behavior of the international prices, which were influenced by the low level of petroleum in the United States and also by a higher demand from that country. These four products contributed with 1.17 p.p. (in 1.14%).

Other chemicals: the chemical industry registered a positive change in the prices of 3.50% in April 2015, the highest rate among all the rates in the manufacturing industry. Considering this variation, the cumulative index in the year changed from a negative figure in March (-0.46%) to a positive figure (3.02%). Compared with the same month of 2014, the current prices were 3.10% higher. The prices of intermediate and basic petrochemicals for plasticizers, resins and fibers were bound up with the international values and the prices of naphtha. In addition, the increasing costs of energy and raw materials, as well as the cumulative quotation of the US dollar in 12 months (36.3%) explained such rate.

Basic metals: the comparison between the prices of this sector in April and March 2015 recorded a negative variation of -1.11%, the first negative change in the year. As a result, this sector posted a cumulative variation of 8.28% in the last 12 months and of 2.65% in the cumulative index in the year. "Unwrought non-alloy aluminum", "carbon steel ingots, blocks, rods or plates", "uncoated hot-rolled steel carbon coil" and "stainless steel coil or sheet, including strips" stood out in terms of influence when analyzed against the immediately previous month and contributed with -1.15 p.p. to the variation of -1.11%.

Motor vehicles: the change of 0.08% of this sector in April 2015 was the lowest rate since June 2014 (0.06%). As a result, the cumulative rate reached 2.71%. Compared with April 2014, the prices were 7.73% higher than those in the previous year, reflecting, at a large extent, the increase registered between August and September 2014 (1.69%), the highest increase in the time series started in January 2010.

The four products that mostly influenced the April-over-March indicator were "flex-fuel, gasoline or ethanol passenger car with any engine power output", "tractor-truck for trailers and semi-trailers", "engine parts for motor vehicles" and "gearbox for motor vehicles", which accounted for -0.03 p.p.