In November 2012, the Producer Price Index (IPP) recorded a 0.25% change over the previous month, a result above that of August (0.23%). In the comparison between the current month and the same month in the previous year (index accumulated in 12 months), prices changed by 6.64% in November and 6.39% in October. The accumulated changes in 2012 were 6.82%, in November, and 6.56%, in the previous month.

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.

14 of the 23 activities surveyed recorded prices rises

In November 2012, 14 of the 23 activities surveyed recorded price rises, versus 13 activities in the previous month. The four biggest changes in the November/October comparison were recorded by wood (1.96%), toiletries, soaps and cleaning preparations (1.44%), manufacture of machinery and equipment (1.44%) and tobacco (1.32%). The most influential items in the apporached change (0.25%) were food products (0.12 percentage points), petroleum refining and alcohol production (0.07 p.p), manufacture of machinery and equipment (0.06 p.p) and electrical machinery and apparatus (-0.03 p.p.).

The indicator accumulated in 2012 reached 6.82% in November, versus 6.56% in October. Among the activities which recorded the biggest percent changes in this context, the main ones were tobacco (16.78%), food products (14.22%), beverages (12.46%) and pulp and paper (11.14%). The main sectors were food products (2.68 percentage points), other chemical products (1.03 p. p.), petroleum refining and alcohol products (0.67 percentage points). and beverages (0.35 p.p.).

Compared to the same month in 2011 (index accumulated in 12 months), prices rose by 6.64%, versus 6.39% in October. The four biggest price changes were those of tobacco (19.02%), food products (13.87%), beverages (13.12%) and pulp and paper (11.70%).  The main influences in the comparison between November and the same month in the previous year came from food products (2.62 percentage points), other chemical products (0.90 percentage points), petroleum refining and alcohol production (0.63 percentage points) and manufacture of machinery and equipment (0.37 p.p.).

In November, the prices of food products changed, on the average, by 0.58%, a positive rate after the -1.44% registered in October.  Among the positive rates observed in 2012 (a total of eight), this was the lowest one. With this result, the sector accumulated a price change of in 14,22% this year. On the other hand, versus November 2011, prices became 13.87% higher in 2012. Considering indexes accumulated in 2012 and in 12 months, the highlights were products with price rises resulting from specific problems in supply or affected by the loss of value of the Brazilian currency throughout the year (mainly between February and June, when the Real value fell by more than 19%): rice products and soybean derivatives. In November, for the first time in the series, the prices of beverages recorded negative change (-0.65%). It was also the first negative result after eight consecutive months of positive changes (there was change of -0.25% in February). With this result, the sector accumulated, in 2012, change of 12.46% until November, versus 13.19% of the previous month. Prices in November 2012, accumulated in 12 months, were 13.12% above those in the previous year.

In this type of comparison, the resultwas only higher than those of months preceding May.  All the products from this activity recorded fall of prices in November, the main highlights being “beverage preparations for industrial purposes", in terms of change, and "beer and draft beer", in terms of influence. The year 2012, as seen until November, was characterized by a very peculiar behavior of prices in this sector, with positive changes, on the average. The comparison with other sectors, considering the year-accumulated index, accounted for the third major price rise, being second only to sectors affected by the reduced value of the dollar (as it is the case of tobacco: -16.78%) or also by specific issues related to a clash in demand (food products: -14,12%).

The activity petroleum refining and alcohol production recorded price rises of 0.67% in November versus October, following the positive results presented since June. In 2012, the sector accumulated rise of 6.06%.  In terms of the index accumulated in 12 months, November recorded 5.68%. In terms of influence, in November versus October, the four products, three of which came from petroleum refining:  “naphthas”, “aviation kerosene” and “diesel and other fuel oils” – which mostly affected this indicator - accounted for 0.72 p.p. out of 0.67% from all the sector, all of them with results, except for “aviation kerosene”. Among the products, the only highlight in the alcohol sector was "ethyl alcohol (anhydrous or hydrated)”.  In terms of the yearly-accumulated index, the four highlights are the same as in the monthly indicator: “ethyl alcohol (anhydrous or hydrated)”, “aviation kerosene”, “diesel and other fuel oils” and “naphthas”.  The difference lies in the type of performance:  “ethyl alcohol (anhydrous or hydrated” with negative performance and “aviation kerosene”, with positive.  In terms of results accumulated in 12 months, it is observed that “naphthas”, “aviation kerosene” and “diesel and other fuel oils” recorded positive results, whereas “ethyl alcohol (anhydrous or hydrated)" had negative ones.

Other chemical products recorded, in November, -0.11% compared with October 2012, reversing the performance of the previous month (3.45%). The sector recorded change of 9.56% accumulated in 2012 and of 8.25% accumulated in 12 months. Considering the November/October comparison, there were positive changes in two products ("herbicides" and "polypropylene" (PP)")  whereas two others changed negatively ("ethene / ethylene") and "propene / propylene").  These four products accounted for -0.15 p.p. of the change of -0.11%. In the year, all the highlights recorded positive changes:  "ethene (ethylene)", "polypropylene (PP)", "herbicides" and NPK fertilizers". The same occurred regardnig the index accumulated in 12 months, except for one product: whereas "polypropylene (PP)" featured as accumulated in the year, the highlight in the last 12 months was "HDPE".

In November, the negative price change (-1.19%) of electrical machinery and apparatus was more significant than that of October (-0.52%). As a result, the sector accumulated change of 1.58% versus 2.81% in the previous month. Compared with the same month in the previous year, after two consecutive months with positive results (1.62% in September and 1.57% in October), November presented, once more, a negative figure (-0.39%). "Electric engines", "frames and related items with electrical appliances for interruption or protection", "batteries, except for vehicles" and "stoves for domestic use" are the four main products which mostly influenced the monthly change (-1.11 p.p. out of -0.52%).  In terms of change, only "frames and related items with electrical appliances for interruption or protection" (negative change) and "batteries, except for vehicles" (positive change) were the highlights.

Machinery and equipment changed by 1.44% in relation to the previous month, the highest result in the second semester and the third highest in the year.  As a consequence, the index accumulated in 2012 rose to 7.72% and that accumulated in 12 months recorded a change of 8.50%. The results of the last two indicators were the highest in 2012. The products which mainly influenced the monthly change were" roller bearings for industrial equipment," agricultural tractors" and "valves and faucets, including hydraulic and pneumatic ones", with positive changes. The item “compressors for refrigeration appliances and towable air compressors” faced significant negative change. Together, these products corresponded to 1.14 p.p. Considering the index accumulated in the year, the main highlights were “agricultural tractors”, “roller bearings for industrial equipment”, “air-conditioning, except vehicles” and “wheel loaders”, all with positive changes.  The main products contributing to the 12-month index were "agricultural tractors", " roller bearings for industrial equipment”, “air-conditioning, except vehicles”, and valves and faucets, including hydraulic and pneumatic ones", all of which recorded positive changes.