IPP
Industry prices fell 0.30% in May, under the impact of the food sector
June 30, 2026 09h00 AM | Last Updated: July 01, 2026 07h35 PM
Domestic industrial prices fell by an average of 0.30% in May compared to April 2026, reversing the trend seen between March and April 2026 (when prices rose by 2.62%). The 12-month cumulative change stood at 1.99%. Meanwhile, the figure for the first five months of 2026 reached 4.80%—the fourth-highest rate recorded for the period ending in May since the time series began in 2014.
The data comes from the Producer Price Index (IPP) for Mining and Manufacturing Industries, released today (30) by the IBGE. The survey measures "factory gate" product prices—excluding taxes and freight costs—and covers broad economic categories.
In May, seven of the 24 industrial activities surveyed showed negative price changes compared to the previous month, mirroring the trend seen in the overall industry index. By contrast, certain activities had shown lower average prices in April compared to the month prior, even though the change in this same indicator had been positive for the industry as a whole.
The four activities with the largest changes in absolute terms were: mining and quarrying (-5.90%); rubber and plastic (4.80%); wood (3.08%); and other chemical products (2.14%).
The food industry was the most significant activity in the composition of the aggregate result when comparing May prices to those of April. The sector accounted for -0.48 percentage points (pp) of the overall industry's -0.30% change.
"The food sector, which carries the greatest weight in the index calculation, fell by 2.05% during the month. A key factor was the drop in sugar prices—driven by the progress of the sugarcane harvest—which caused prices in the sugar manufacturing and refining group to fall by 10.38%. The decline in coffee prices was also notable, reflecting the coffee harvest season," explained IPP manager Murilo Alvim.
Among the activities showing the largest year-to-date changes as of May 2026, the following stood out: other chemical products (20.28%), mining and quarrying (15.78%), rubber and plastic (14.78%), and petroleum refining and biofuels (8.27%).
“The rubber and plastics sector, for instance, showed a 4.80% change from April to May. This result was driven by the manufacture of plastic products, with prices rising by an average of 6.59%—impacted by increases in petroleum derivatives observed in previous months, the effects of which continued to be passed along the production chain. In the last three months alone, this plastic materials group saw a 21.83% increase, helping the sector stand out as having one of the largest changes in the year-to-date indicator as well,” he highlighted.
Regarding Broad Economic Categories, the price change in May compared to April—which stood at -0.30% for industry overall—broke down as follows: -0.21% for capital goods (BK); -0.29% for intermediate goods (BI); and -0.34% for consumer goods (BC). Within the consumer goods category, the change was 0.09% for durable consumer goods (BCD) and -0.42% for semi-durable and non-durable consumer goods (BCND).
Intermediate goods exerted the greatest influence among the Broad Economic Categories; they accounted for 55.18% of the general index's composition and contributed -0.16 percentage points to the -0.30% change seen in the mining, quarrying and manufacturing industries.
Rounding out the list were consumer goods, with an influence of -0.12 percentage points, and capital goods, with -0.02 percentage points. In the case of consumer goods, the influence observed in May comprised 0.01 percentage points attributable to price changes in durable consumer goods, and -0.13 percentage points associated with changes in semi-durable and non-durable consumer goods.
Learn more about the IPP
The IPP tracks the average change in selling prices received by domestic producers of goods and services—and their evolution over time—signaling short-term inflationary trends in the country. It is an essential indicator for macroeconomic monitoring and a valuable analytical tool for public and private sector decision-makers.
The survey tracks prices received by producers across just over 2,100 companies; these prices exclude taxes, tariffs, and freight costs and are determined based on standard commercial practices. Approximately 6,000 prices are collected monthly. Complete IPP tables are available on Sidra. The next IPP release, covering May, is scheduled for June 30.
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