The prices of industry changed by 0.92% in August 2019, a result above that of July (-1.20%). The cumulative index in the year was 2.48% and, in the last 12 months, 1.43%. In August 2019, out of the 24 activities surveyed, 20 recorded increase. See the support material for the Producer Price Index (IPP) for further information. 

 The four biggest changes observed in August 2019 came from: mining and quarrying industries (7.67%), other transportation equipment (3.65%), tobacco (3.29%) and basic metals (1.99%). In terms of influencr, the highlights were mining an quarrying industries (0.38 p.p.), food products (0.20 p.p.), basic metals (0.12 p.p.) and other chemicals (0.08 p.p.).

In August 2019, the cumulative index in the year (August 2019 against December 2018) hit 2.48%, versus 1.55% in July 2019. Among the activities that registered the biggest percentage changes in this indicator, the highlights were: mining and quarrying industries (30.36%),  oil refining and ethanol products (7.91%), pulp and paper (-7.84%) and pharmaceuticals (7.39%). The sectors that exerted the biggest influence were: mining and quarrying industries (1.27 p. p.), oil refining and ethanol products (0.74 p.p.), other chemicals (-0.33 p.p.) and paper and pulp (0.28 p.p.).

Considering the cumulative index in 12 months (comparison between August 2019 and August 2018, prices changed 1.43%, versus 1.37% in July 2019. The four biggest changes were recorded in mining and quarrying industries (31.44%), pulp and paper (-9.07%), pharmaceuticals (8.85%) and manufacture of machinery and equipment (7.23%). 

Among the main economic categories, the change of 0.92% in the comparison between August and July this year was subdivided as follows: 1.14% in capital goods; 1.28% in intermediate goods; and 0.36% in consumer goods (-0.48% in durable consumer goods and 0.54% in semi and non-durable goods). And the influence was as follows: capital goods (0.09 p.p.); intermediate goods (0.69 p.p.); and consumer goods (0.14 p.p.), 0.17 p. p for semi and non-durable consumer good and -0.03 p.p. for durable consumer goods.

The cumulative changes of the major economic categories in the year were: 4.07% for capital goods (with an influence of 0.30 p.p.), 2.03% for intermediate goods (1.11 p.p.) and 2.83% for consumer goods (1,07 p.p.). In this last case, the result was influenced by products of durable consumer goods (0.16 p.p.) and by semi- and non-durable consumer goods (0.91 p.p.). In comparison with the last 12 months, the changes were: capital goods (6.12%), intermediate goods (0.04%) and consumer goods (2.72%).

See the main highlights below:

Mining and quarrying industry: in August 2019, prices in the sector rose 7.67% against July.  The cumulative rate in the year stayed at 30.36%. In the comparison with August 2018, there was a positive change of 31.44%. Mining and quarrying industries was a highlight with the highest changes observed in the month for three survey indicators.  In terms of influence, a highlight was the monthly change (0.38%) and the cumulative index in the year (1.27 percentage points).  The main impacts came from the prices of iron ore, influenced by the international market of that commodity.

Food products: in comparison with July, the result of August (0.%) is the first positive one after two negative figures.  The cumulative index in the year went back to a positive level (0.58% in August and -0.31% in July), but below that of August 2018 (8.21%).  In comparison with August 2018, the change was also positive (0.61% in August and -0.73% in July).  In the month-on-month comparison, the sector recorded the second biggest influence (0.20 percentage points).  The first one was that of mining and quarrying industries (0.38 p.p.)

Among the most influential products in the comparison between August and July 2019, only "frozen poultry and giblets" recorded a negative contribution.  The influence of the four highlights (the others are "fresh or chilled beef", "sterilized milk /UHT/long-life milk" and "crude degummed soybean oil") was 0.54 p.p., that is, the other products had an influence of 0.35 p.p.

Pulp and paper: the manufacture of pulp and paper recorded a negative change (-1.07%) in the comparison between August and July this year, leading to a cumulative result of -7.84% in 2019.  The activity represented the four major influence (in module) in terms of cumulative results in the year, or the third major influence considering only the activity in mining and quarrying industry.  In relation to the last 12 months, the change was of -9.07%.

In the month-on month comparison, the highlights were: "chemical wood pulp, soda or sulphate, excluding dissolving pulp", and "cardboard, uncoated or coated by means of inorganic substances", with negative changes.  The products "corrugated cardboard box" and "paper bags" were highlights due to their positive changes.  These four products accounted for -1.37 p.p. of the activity indicator.

Oil refining and ethanol products: in the last three months, in the month-on-month comparison, the prices of the sector recorded negative changes (-0.33% in August).  The cumulative index in the year was 7.91%, a result below those recorded between March (12.51%) and July (8.26%). In the comparison with August 2018,for the second month in a row, there was a negative result (1.03%).  The sector recorded the second biggest change in the cumulative index in the year (7.91%), and, as a result, the second influence on the indicator (0.74%), only after mining and quarrying industry, 1.27 p. p.

In terms of influence, both in the month-on-month comparison and in the cumulative index in the year, the list of products is quite similar.  The difference is that, in the month-on-month comparison, there is "liquefied petroleum gas (GLP)" (negative influence), but not "gasoline, except for aviation" and, in the cumulative index in the year, "gasoline for aviation" (positive influence) and not "liquefied petroleum gas" (GLP). 

So, in the month-on-month comparison, "liquefied petroleum gas (GLP_" and "diesel" (positive influence), "fuel oil, except diesel" (negative influence) and "ethyl alcohol (anhydrous or hydrated)" (positive influence) accounted for -0.02 p.p., or -0.33% (that is, -0.31 p.p was the overall influence of the other six products).

Other chemicals: in the comparison August versus July, the prices of the sector changed by 0.92%, the fifth positive result in the year.  Despite the great number of positive price results in the year, the cumulative change in 2019 was of -3.81% (after -4.68% in July). In the comparison against the same month a year ago, for the second time since July 2017 (0.16%), the cumulative index in 12 months is negative (-7.11%), a result compatible with the growing level of imports of chemical products.  As the third main contribution to the index (8.63%), the highlight in the sector resulted from: the fourth influence, from the perspective of the August versus July comparison (0.08 p.p., in 0.92%) and the third cumulative one (-0.33 p.p, 2.48%).

With an influence of 0.29 p.p., three of the four highlights in the August-July comparison recorded positive results: "NPK fertilizers", "benzene" and "insecticides for use in agriculture".  The only highlight, in terms of influence, but with a negative result is "non-saturated propylene".

Basic metals: comparing the prices of August and July, there was a change of 1.99%, the third negative result in the year, with a reversal of the negative change recorded in June, the biggest decrease in all the time series.  The result was mainly due to products whose prices depend on those in the international market, the exchange rate and of products in the group of basic metals and non-ferrous material:  "unwrought non-alloy aluminum", "aluminum plates and strips, more than 0.2 mm thick" and "gold for non-monetary uses", all accounting for a positive contribution.  These three products and "ferroniobium" accounted for 1.79 p;p of the monthly change and the other 20 products, for 0.20 percentage points.

Considering the cumulative indexes in the year, the prices changed, throughout 2019, -0.28%, a figure that is far from the cumulative result in July 2018 (14.74%).  In the cumulative index in 12 months, the change was also negative (-1.35%).  Among the four highlights in terms of influence, two also accounted for negative results on the index: "carbon steel ingots, blocks, rods or plates" and "aluminum oxide".   On the other hand, "aluminum plates and strips, more than 0.2 mm thick" and "gold for non-monetary uses", accounted for positive impacts on the cumulative indicator in the year.