In October 2017, the prices of mining and quarrying industries and of manufacturing industries increased 1.79% in relation to the previous year, the highest positive change in this comparison since September 2015 (2.99%). Among the 24 activities, 19 registered positive price changes, just as in the the previous month. The cumulative indicator in the year was 2.27%, against 0.47% in September.

The Producer Price Index - IPP of the Mining and Manufacturing Industries measures the evolution of the prices of products "at the factory gate", free from taxes and freight, and encompasses information by major economic category, i.e., capital goods, intermediate goods and consumer goods (durable and semi- and non-durable). The complete publication of the IPP can be accessed here.

The four biggest changes were reported among the products of the following industrial activities: mining and quarrying industries (9.41%), other chemicals (4.23%), petroleum refining and ethanol products (3.21%) and basic metals (2.82%).

In terms of influence between October and September 2017, the highlights were: other chemicals (0.39 p.p.), petroleum refining and ethanol products (0.35 p.p.), mining and quarrying industries (0.34 p.p.) and basic metals (0.22 p.p.).

In October, the cumulative index in the year reached 2.27%, against 0.47% in September 2017. In this indicator, the activities that had the highest changes were: petroleum refining and ethanol products (11.18%), mining and quarrying industries (10.17%), basic metals (9.58%) and paper and pulp (8.80%).

Considering this indicator, the most influential sectors were: food products (-1.59 p.p.), petroleum refining and ethanol products (1.12 p.p.), basic metals (0.70 p.p.) and other chemicals (0.55 p.p.).

The price change was 4.41% compared with October 2016, against 2.66% in September 2017. The four biggest price changes were reported in the mining and quarrying industries (34.66%), basic metals (16.10%), petroleum refining and ethanol products (14.13%) and paper and pulp (10.31%). The most influential sectors were: food products (-1.53 p.p.), petroleum refining and ethanol products (1.41 p.p.), basic metals (1.14 p.p.) and mining and quarrying industries (1.06 p.p.).

In October 2017, the price change of 1.79% against September reflected in the Major Economic Categories like this (table 4): -1.09% in capital goods; 2.75% in intermediate goods; and 0.44% in consumer goods (0.03% in durable consumer goods and 0.57% in semi- and non-durable consumer goods).

The influence of the result of the overall industry (1.79%) on the Major Economic Categories was: -0.09 p.p. of capital goods, 1.54 p.p. of intermediate goods and 0.16 p.p. of consumer goods. In the case of consumer goods, 0.15 p.p. was due to price changes observed in semi-and non-durable consumer goods and 0.01 p.p., in durable consumer goods.

The price changes in industry recorded a cumulative rate of 2.27% in the year, being 1.99% from capital goods (influence of 0.17 p.p.), 3.86% from intermediate goods (2.15 p.p.) and -0.14% of consumer goods (-0.05 p.p.). In the latter case, the result was influenced by durable consumer goods (0.31 p.p.) and by semi- and non-durable consumer goods (-0.36 p.p.).

The cumulative index in the last 12 months in industry reached 4.41% in October, with the following changes: capital goods, 3.61% (0.31 p.p.); intermediate goods, 6.53% (3.62 p.p.); and consumer goods, 1.35% (0.48 p.p.), with the influence of durable consumer goods at 0.40 p.p. and of semi- and non-durable consumer goods, 0.09 p.p.

Seven sectors stood out in October

Mining and quarrying industries: high of 9.41% in relation to September. The cumulative index of the year was positive (10.17%) for the second month in a row. In the comparison with October 2016, there was a positive change of 34.66%. The activity kept the upward trend in its prices mainly due to the change seen in the price of commodities throughout 2017.

Food products: for the second time in the year, the rate seen in the comparison between the current month (October) and the previous one was positive, 0.86% (in May, 0.40%). It is the highest positive rate since September 2016 (0.98%). Despite this fact, the cumulative change in the year has remained negative (-7.45%) since January. In the comparison with October 2016, the change is also negative, -7.04% - the fifth consecutive negative change in this comparison.

Among the highlights in the comparison with the previous month, "refined cane sugar" and "soybean residue" appear both in terms of change and influence. The former with a negative change and the latter with a positive change. Together with them are "fresh or cooled beef" and "crude soybean oil, even degummed", both with a positive impact. The influence of the four products totals 0.56 p.p. (in 0.86%).

In the cumulative index of the year and in 12 months, all the products with highlighted influence pressed negatively the price changes, except for "concentrated orange juice". Among the products, two sugarcane derivatives were a highlight ("crystallized sugar" and "Demerara sugar, including VHP") and two soybean derivatives ("refined soybean oil" and " soybean residue").

Despite the increase seen in October, in relation to the result of the mining and quarrying industries and manufacturing industries, the sector's highlight is due to the negative influence of the cumulative indexes of the year (the highest, -1.59 p.p., in 2.27%) and in 12 months (again the highest, -1.53 p.p., in 4.41%).

Paper and pulp: positive monthly change (2.58%) for the third month in a row. The cumulative indicator in the year remained positive (8.80%), as it had been happening since April 2017. Compared to October 2016, the cumulative index in 12 months was 10.31%. The prices of "pulp" had a highlight in the influence on three indicators of the activity.

Petroleum refining and ethanol products: along 2017, the prices of this sector had five negative changes and, just like this October (3.21%), five positive ones. Despite this apparent balance, the cumulative change in the year, of 11.18%, is the greatest of the series, i. e., not even in the end of the year was there a positive change of such magnitude.

In the comparison with the same month a year ago, it is the biggest rate seen, 14.13%. The index-number, 120.28, is also the highest of the series. Just to illustrate, whereas, since December 2013, the prices of the sector had changed 20.28%, in the set of mining and quarrying industries and manufacturing industries that change was of 16.20%.

The four products of greatest influence in the monthly result are petroleum derivatives, all with a positive change of prices. The influence was of 3.07 p.p. (in 3.21%).

Other chemical products: the prices in this sector changed, on average, 4.23%, the sixth positive price change of the activity in the year, making the level of cumulative prices along the year stay at 5.96% and 6.22% in the last 12 months.

Those figures must be analyzed in the light of the rising pressure on the prices of chemicals, as the operation in a number of plants was interrupted as a result of recent climate issues in other countries.

An important product, such as "manure or NPK fertilizers", has its price linked to the prices charged abroad, since the domestic supply is limited. The increase in the prices of raw-materials, especially those produced in China, took the sale value of products up, as in "ammonium sulphate or urea" and "ammonia".

In terms of positive price changes, "ammonia", "styrene", "oxygen" and "ammonium sulphate or urea" stood out. In terms of influence, with all the four products as positive highlights in their results, are: "manure or NPK fertilizers", "non-saturated ethylene", "non-saturates propane" and "ammonium sulphate or urea", with influence of 2.44 p.p. in 4.23%.

Basic metals: comparing the prices of October against September, there was a change of 2.82%, the seventh positive result in the year and it generated a change of 9.58% in the year and, in the last 12 moths, of 16.10%. In the latter case, it was the highest change in the manufacturing industry and the second in the overall index. In September 2016, the basic metal sector decreased (-2.44%) in the cumulative index in 12 months and now the top change was reached in this comparison.

All the products that most influenced the results of the month against the previous month presented positive results. And three of the products of the highest weight in the activity are: "unwrought non-alloy aluminum", "carbon steel cold-rolled coil, uncoated", "carbon steel hot-rolled coil, uncoated" and "stainless steel coils or plate, including strips".

Among the 22 selected products for the survey, those four products represented 1.99 p.p. of the monthly change, i. e., the other 18 products influenced it at 0.83 p.p.

Motor Vehicles: the prices of the sector, in relation to September, changed 0.36%, a lower change than the one seen in the previous month (0.67%). As a result, in the cumulative index in the year, the prices changed 4.05%, a figure higher than the one seen in October 2016 (2.81%), but lower than the one seen in 2015 (5.92%). In the comparison with October 2016, the change was of 5.15%.