In June 2012, the Producer Price Index (IPP) recorded a change of 1.14% when compared to the figure in May, with a result below the rate observed between April and March (1.69%).  In the comparison between the current month and the same month in the previous year (accumulated in 12 months), prices changed by 6.66% in June and 4.78% in May.  The change accumulated in the year was 4.53%.

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

In June, 22 of the 23 activities surveyed recorded positive change in relation to May

In June 2012, 22 of the 23 activities surveyed had positive changes of price, versus 19 of May over April. The four main changes observed in June occurred among products included in the following activities of industry: food products (2.32%), beverages (2.28%), pulp and paper (2.06%) and furniture (2.04%). In terms of influence, in the comparison between June/2012 and May 2012 (1.13%), the highlights were food products (0.45%), other chemical products (0.17%), motor vehicles (0.08 percentage points) and pulp and paper (0.07 percentage points).

In the comparison between June/2012 with December 2011 (accumulated in the year), the change of prices which was 4.53%, versus 3.36% in May.  The biggest price changes were those of tobacco (15.95%), pulp and paper (9.57%), food products (8.82%) and other transportation equipment (7.34%).

The main influences for the indicator accumulated in the year came from food products (1.66 percentage points), other chemical products (0.69 percentage points), pulp and paper (0.30 percentage points).  and petroleum refining and alcohol products (0.26 percentage points). The comparison between June 2012 and June 2011 (accumulated in 12 months) shows price change of 6.66%, versus 4.78% in May.  The biggest price changes were those of tobacco (15.95%), pulp and paper (9.57%), food products (8.82%) and other transportation equipment (7.34%). The biggest influences of this indicator were food products (3.12 percentage points), other chemical products 90.62 percentage points), beverages (0.40 percentage points),  and petroleum refining and alcohol products (0.38 percentage points).

Food products:  The prices of food products changed, in June, by 2.32% compared with those of May.  As a result, in 2012, the sector accumulated 8.82% on increase, the third rate among the sectors of manufacturing industry (tobacco:  15.95% and pulp and paper:  9,57%). Versus the same month in 2011, prices got 17.50% higher in June 2012, what makes the rate the highest since January 2011 (19.85%).

Beverages:

In relation to the first quarter of 2012, the activity recorded the biggest rise in terms of prices: the index accumulated in the year, which was 0.5% in March 2012, reached 5.22% in June 2012. In terms of the index accumulated in the last 12 months, the segment recorded 15.37%, the highest figure of the history of time series of this indicator.

Tobacco:  The prices of the tobacco sector rose 1.14% compared to those in the previous month.  The result of this indicator came mainly due to the 3.17% rise of the dollar in relation to the real, as occurred in the month.

Footwear and leather products:  The prices of this sector recorded positive change of 1.39% compared to that of the previous month.  This monthly rate is the second in the year, after that of March (1.71%), only.  The index accumulated in the year was 5.30%, with 4.53% for the group of manufacturing industry.

Pulp and paper:  Considering the index accumulated in the year, the indicator recorded 9.57%. The second quarter of the year recorded, therefore, increase above the first quarter, once in March 2012 the same indicator recorded change of 3.02% in prices.

Petroleum refining and alcohol products: In comparison with the first quarter, the activity recorded biggest change of prices in the second quarter, since the index accumulated in the year was 2.31% in June, versus -0.42% in March.  However, in the second semester, the pace of price change recorded deceleration:  the index of June versus May was 0.15%, below the comparison between March and February (0.36%), April versus March (1.39%) and May versus April (1.18%).

Other chemical products:  In June, for the fourth consecutive month, the prices of other chemical products recorded positive change when compared to those of the previous month:  However, the change of 1.53% is smaller than those of may (3.24%) and April (3.15%).  With the June result, the sector accumulated, in 2012, change of 6.35%.  In the comparison with the same month in the previous year, the prices of this sector are 5.54% bigger in 2012, the best result in this comparison since December 2011 (8.34%).

Motor vehicles: In June, the prices of this activity recorded positive change of 0.69% compared with that of May, versus negative change of 0.55% in the previous month.   So, the accumulated index closed the year with positive change of 0.57%.

Other transportation equipment:  In June 2012, the prices of this activity recorded positive change of 1.59% compared with that of the previous month, versus positive change of 4.48% in May.  The accumulated index closed recorded positive change of 7.34%.

Furniture: With the change of 2.04% of June prices in relation to May, the furniture sector accumulates positive change of 4.70% in 2012. In the comparison June 2012/June 2011, the prices are 8.29% bigger than in the previous year.  In this comparison there have been rising prices in the last four months, and the change of this month was the biggest.