In May 2013, the Producer Price Index (IPP) recorded a change of 0.28% over that of April...

In May 2013, the Producer Price Index (IPP) recorded a change of 0.28% over that of April, with a result below the rate registered in the comparison between April and March (0.40%).  

The comparison between May and the same month a year ago (cumulative index in 12 months) shows price changes of 4.07% in May and 5.54% in April. The cumulative change was 0.27%.   

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 May, 17 of the 23 activities surveyed recorded positive change in relation to April

In May 2013, 17 of the 23 activities surveyed had positive changes of price, versus April in comparison with March. The main changes occurred among the products included in the following industrial ativities: wood (1.50%), textiles (1.45%), food products (1.42%) and computer equipment, electronic and optical apparatus (-1.39%).

In terms of influence, the comparison between May 2013 and April 2013 (0.28%) shows as main highlights (0.27 percentage points), other chemical products (-0.13 percentage points), basic metals (0.05 percentage points) and petroleum refining and alcohol production (0.10 p.p.).

In the comparison between May/2013 and December 2012 (cumulative in the year), prices changed 0.27%, versus -0.01% in April. The four biggest changes were those of textiles (5.87%), food products (-3.72%), manufacture of apparel and accessories (3.58%) and wood (3.38%). The main influences came from food products (-0.75 p.p.), basic metals (0.26 p.p.), petroleum refining and alcohol production (0.20 p.p.) and motor vehicles (0.14 p.p.).

The comparison between May 2013 and May 2012 (cumulative in 12 months) shows price change of 4.07%, versus 5.54% % in April. The four biggest prices changes were those of textiles (8.86%), pulp and paper (7.14%), rubber and plastic (6.69%) and petroleum refining and alcohol production (6.10%). The main contributions to the indicator came from food products (0.77 percentage points), petroleum refining and alcohol production (0.67 percentage points), other chemical products (0.53 percentage points) and motor vehicles (0.28 p.p.). 

Food products: In May 2013, compared with the previous month, the prices of food products changed, on average, 1.42%, the highest positive result since August 2012 (2.07%). In spite of the positive result of May (and of April, 0.17%), the cumulative index remained negative (-3.72% versus -5.07% in April). Over the same month in 2012, the current prices are 3.98% higher, a figure which has been lower since December 2012 (14.86%). 

Among the highlights in terms of influence, two items (“soybean residue” and “sterilized milk/carton milk”) caused positive impacts and other two others (“meat and frozen poultry and giblets” and “meat and fresh or cooled poultry and giblets) did the same in negative terms. These four items accounted for 1.06 percentage points in the 1.42% change. Among them, “soybean residue” and “meat and fresh or cooled poultry and giblets” also recorded some of the biggest price changes. Other two highlights due to their price change were “demerara sugar, including VHP” and “sausages, cured meat and related products", both with positive changes.

Petroleum refining and alcohol products: The activity “petroleum refining and alcohol production” recorded change of -0.93% in May versus April 2013, reversing the positive change recorded in April. The cumulative index in the year rose 1.85%. In a comparison with the result in the month on month indicator, May recorded 6.10%. 

In terms of influence, of May versus April, the main products accounting for the result of this indicator represented -0.92 out of -0.93 percentage points of the sector as a whole, and three of them belonged to petroleum refining: “naphthas”, “aviation kerosene” , with negative results, and “basic fuel oils”. The only highlight related to the alcohol sector was “ethyl alcohol (anhydrous or hydrated)”, also with a negative performance.

In the year, in terms of the main products, there is a similar scenario. “naphthas”, “aviation kerosene”, “gasoline” and “diesel and other fuel oils" are the main highlights. “Diesel and other fuel oils" and "gasoline" had a positive performance, whereas "naphthas" and "kerosene" recorded decrease in the year. Some products always figure as highlights, considering the last twelve month period. 

Other chemical products: The chemical industry recorded, in May, a change of -1.18% over the April figure, following the negative trend of the previous month, when there was -0.45% versus the March result. In the year, the cumulative price figures reached -0.21%, whereas in the comparison between May 2013 and May 2012, they rose by 4.80%.

In terms of May / April figures, the four highlights came from four different groups. Organic chemistry, with “ethylene”, and its negative performance. The main item in pesticides was "herbicides", the only one to record a positive performance among the four items selected. Among the inorganic compounds, “NPK fertilizers”, had a negative performance, as well as “polypropylene” and elastomers. Together, the four items accounted for -0.62 percentage points of the -1.18% recorded by the sector. 

The cumulative indicator in the year recordd little change, in terms of the other highlights, when compared to the monthly indicator. The difference was the organic chemistry chain, which, besides “ethylene” also brought “propene”. Nevertheless, wheres the first one had a negative performance, the second had positive results in the year. The other items, “herbicides” and “NPK fertilizers”, followed the same path as the monthly indicator.

The scenario was significantly different concerning the cumulative indicator in 12 months. Whereas “NPK Fertilizers”, a highlight due to its negative participation in the influence of month-on-month indicators and cumulative indicators in the year. In terms of the 12-month indicator it had a positive performance, similarly to the other three highlights: “herbicides”, “insecticides” and “superphosphates”. These three products associated to agricultural activity appear in the index because of the strong demand of the havest in the last few months of the previous year. 

Basic metals: in May 2013, the basic metals sector recorded positive change of 0.69% in relation to April, and that was the fourth positive change in the year. In the month, the four products recording the biggest price changes are also selected as the most influential in the month and, three of them are related to the steel industry: with positive change “ingots, blocks, rods or plates” and, with negative changes, “steel plates, coils, strips and tapes” and “carbon steel wires”. The fourth highlight was “steel plates and strips in squared or rectangular shapes”, also with negative change.

In an analysis of the influence, in terms of the cumulative index in the year, of the four highlights, we see that three are related to steel, with positive influences and one to non-metallic minerals (“non-alloy aluminium in raw forms”) with negative influence. The cumulative index in the year presents positive change of 3.37%, above the cumulative indexes of May 2012 and 2011, but below that of May 2010. This change is bigger than that of manufacturing industries (0.27%). Considering the average change of 2.77% in this sector, there has been clear recovery of prices in the current year, despite the fall of national output and the excess of supply worldwide. It is worth mentioning that, in terms of the main products affecting the index in the last 12 months, the only product which recorded fall of prices was “carbon steel ingots, blocks, rods or plates”, which has recovered in terms of prices this year. 

Motor vehicles: car-related activities recorded in the indicator of May versus April, change of 0.25%, leading the cumulative figure in the year to 1.22%. In relation to the last 12 months, the indicator recorded 2.40%. 

The main products in relation to the previous month were “tractor trucks for trailers and semi-trailers”, “pieces for motor vehicles”, “injection pumps for motor vehicles”, all of them with positive results, and “passenger cars, gasoline, alcohol or biofuels, of any capacity” with negative result. Together, these products accounted for 0.17 percentage points in relation to April.

The cumulative index in the year shows as main highlights: “pieces for motor vehicles” and chassis with engines for buses or trucks”, with negative results. The products “ passenger cars, with gasoline, alcohol or biofuel engines” and “diesel trucks with a capacity above 5t” recorded positive results. 

With reference to the cumulative index in 12 months, the highlights, with positive results, were “passenger cars with gasoline, alcohol or biofuel engines, of any capacity”, “diesel trucks with a capacity above 5t” and “bus trunks”. Only “ chassis with engines for buses or trucks” cbrought to this index a negative result.