In May 2011, the Producer Price index (IPP) changed by -0.55% over the previous month, a result below that of April (0.28%).  In the comparison between the same month in the previous year (accumulated in 12 months), prices changed by 5.6% in May. The April rate had been 6.68%. The change accumulated up to May 2011 was 1.13%.

IPP measures the evolution of “factory gate” prices, excluded taxes or freight, for 23 manufacturing industry sectors.  The complete publication is available at https://www.ibge.gov.br/home/estatistica/indicadores/precos/ipp/default.shtm

May/April indicator (-0.55%) is the lowest in the series 

In May 2011, 13 of the 23 activities surveyed had positive changes of price over April, versus 12 of the previous month.

The main changes observed in May occurred among the products included in the following activities of industry: computer, electronic and optical material (-2.35%), rubber and plastic (2.15%), metal products (-2.06%) and printing (-2.05%).

The most relevant items were food products (-0.36 percentage points), petroleum refining and alcohol products (0.23 percentage points), metallurgy (0.11 percentage points).  and other chemical products (0-0.09 percentage points).

The indicator accumulated in the year reached 1.13% in May, versus 1.69% in April.   Among the activities which, in May 2011, recorded the biggest percent changes in this indicator, the highlights were:  textiles (10.67%), other chemical products (7.76%), rubber and plastic (6.55%) and computer, electronic and optical material (-5.85%).  In this indicator, the most relevant subsectors to the overall index were:  other chemical products (0.80 percentage points), food products (-0.6 percentage points), petroleum refining and alcohol products (0.43 percentage points) and rubber and plastic (0.23 percentage points). 

Compared to May 2010 (accumulated in 12 months), the price change was 5.6¨0%, versus 6.68% in April.  The biggest prices changes were those of textiles (25.70%), food products (15.85%), (14.26%) and computer, electronic and optical material (-12.51%). The main influences came from food products (2.59 percentage points), other chemical products (1.44 percentage points), (0.92 percentage points) and computer, electronic and optical material (-0.51 percentage points).

In May 2011, the prices of food products decreased by 2.01% when compared to those of April 2011. As a result, the sector accumulated change of -3.50% in 2011 (comparison between May 2011 and December 2010). In the comparison with the same month in 2010, the prices of food products are 15.85% higher in 2011. Compared to the immediately previous month, the series recorded, in March, a rate of - 0,57%, in April, of -1,23%, and now, of -2.01%.

On the other hand, considering an annual comparison, the series, which was 16.77% in March and April, now has fallen to 15.85%.  Prices of this sector have fallen throughout 2011. In the three comparisons, the sector of food products has been very significant in the last three months, except for the figure accumulated in March.  The other figures have been negative in comparisons with the previous month and with December 2010, and positive in comparison with the same month in the previous year.

The prices of textiles, in May 2011, faced negative change of 0.66% over April.  Considering the indexes accumulated in the year and in the last 12 months, the positive changes were, respectively, 10.67% and 25.70%, , lower, however, than in the previous month (11.41% and 27.20%, respectively).  For the first time in the last 12 months, the index recorded negative change.  This inversion occurred due to the recent fall of cotton prices.

In May 2011, the prices of printing activities recorded negative change of 2.05% over the previous month.  As a result, the sector has accumulated positive change of 0.77%.  The index accumulated in 12 months recorded change of 5.51%.  The products which most affected the monthly change were DVDs reproduced from other’s originals and standardized printed material for commercial use.   

The sector of petroleum refining and biofuel recorded change of -2.04% in May compared to April 2011, the first decrease of the indicator since August 2010. The May indicator reverses an upward trend, observed in the figure accumulated in the year, with hike of 3.96%, and in the last 12 months, with hike of 8.46%.  This decrease occurred mainly due to the fall of prices of ethyl alcohol, as a result of the start of the 2011 harvest, with decrease in the May/April comparison.  The contribution of the four main products (ethyl alcohol, basic fuel oils, naphtha and diesel and other fuel oils) resulted in -2.08 percentage points in the monthly indicator.

The prices of other chemical products recorded a negative change of 0.81% in may 2011, over April in the same year.  It is the lowest figure in this type of comparison since July 2010, when there was decrease of 1.93% versus the previous month.  In the year, the sector has accumulated hike of 7.77%, and in the last 12 months, the positive change was 14.26%.

In May 2011, the prices of rubber and plastic recorded negative change of 2.15% over the previous month. The change accumulated in the year was 6.55%, and, in the last 12 months, there was positive change of 7.98%.

New tires for motorcycles, automobiles and utility cars and trucks and buses has been a highlight both in terms of monthly change and change accumulated in the year. Over April 2011, the prices of metallurgy products have recorded positive change of 1.35%, having accumulated 2.12% in the year.  The sector recorded, in the last four-year period, positive change of 5.2%, versus change of -1.63%, that is, it has had recovery of prices , caused principally by carbon steel ingots, blocks and billets; uncoated hot carbon steel bobbins; and carbon steel square bars.  The negative result of May, in the annual perspective, occurs mainly due to products related to metallurgy.

In May, the prices of metal products recorded the negative figure of 2.06%, having accumulated in the year, negative change of 2.24%.  Over April, the sector featured among the four activities with the biggest negative change of prices.  The products with the biggest price changes in the month (aluminum wires and similar artifacts, with steel in the middle, not isolated; interchangeable tools for manual machines or machine-tools; aluminum cans for packaging and steel wool, of several shapes) had negative results.

The sector of computer, electronic and optical material recorded negative change of 2.35% over the previous month, when the rate had been -0.35%.  The index accumulated in the year and in the last 12 months had changes of, respectively, -5.85% and -12.50%, whereas in the previous month the results were -3.58% accumulated, and -9.32% in the comparison between May 2011 and May 2010. 

The importance given to the sector of motor vehicles results from the fact that it is one of the four sectors with the highest weighting in the month, not having recorded significant changes in price levels.  In May 2011, the prices of this activity recorded positive change of 0.37% over the previous month.  The change of the index accumulated in the year was 0.32%, and that of the last 12 months, negative by 0.08%.  Passenger automobiles, the most influential product to the sector, contributed positively to the indicator in comparison with the previous month; however, the influence over the other indicators was negative.