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Producer Price Index changes 0.70% in February

March 27, 2020 09h00 AM | Last Updated: March 30, 2020 11h42 AM

Industry prices changed 0.70% in February, a number higher than that observed in the comparison between January 2020 and December 2019 (0.35%). The cumulative index in the year reached 1.05%, against 0.35% in January/2020. The cumulative figure in 12 months was 6.62%, against 6.36% in January/2020.

Períod RATE
February 2020 0.70%
January 2020 0.35%
February 2019 0.45%
Cumulative in 2020 1.05%
Cumulative in 12 months 6.62%

The Producer Price Index (IPP) for Mining and Quarrying and Manufacturing Industries measures the evolution of product prices "at the factory gate", excluding taxes and freight, and covers information by major economic categories, that is, capital goods, intermediate goods and consumer goods (durable and semi-durable and non-durable). Support material for this release is on the right.


Producer Price Indexes, by Mining and Quarrying and Manufacrturing Industries (General Industry) and Section - Last three months
Indústria Geral e Seções Changes (%)
M/M-1 Acumulado Ano M/M-12
DEC/19 JAN/20 FEB/20 DEC/19 JAN/20 FEB/20 DEC/19 JAN/20 FEB/20
General Index 0.65 0.35 0.70 5.19 0.35 1.05 5.19 6.36 6.62
B - Mining and Quarrying Industries -2.52 5.52 5.51 13.59 5.52 11.34 13.59 29.71 26.76
C - Manufacturing Industries 0.80 0.10 0.46 4.83 0.10 0.56 4.83 5.41 5.74

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

From January to February 2020, 20 of the 24 activities had positive changes, against 17 in the previous month. The four largest increases occurred among the products included in the activities of oil refining and ethanol products (-6.34%), mining and quarrying industries (5.51%), footwear and leather articles (3.40%) and basic metals (2.81%). In terms of influence, petroleum refining and ethanol products (-0.68 pp), food (0.37 pp), mining and quarrying industries (0.26 pp) and basic metals (0.17 pp) stood out.

The cumulative result for the year (February 2020 against December 2019) reached 1.05%, against 0.35% in January. Among the activities that had the greatest changes, mining and quarrying industries (11.34%), basic metals (5.89%), petroleum refining and ethanol products (-5.73%) and other transportation equipment (4.18%). In this indicator, the sectors of greatest influence were petroleum refining and ethanol products (-0.61 pp), mining and quarrying industries (0.51 pp), basic metals (0.34 pp) and motor vehicles (0.12 pp).

In the cumulative index over 12 months (February 2020 against February 2019), the change was of 6.62%, against 6.36% in January. The four highest changes occurred in mining and quarrying industries (26.76%), other transportation equipment (13.25%), food (11.45%) and pharmaceuticlas (10.12%). In this indicator , the sectors of greater influence were food (2.54 pp), mining and quarrying (1.12 p.p.), petroleum refining and ethanol products (0.76 pp) and basic metals (0.41 pp).

Among the major economic categories, in the monthly perspective, the changes were 0.85% in capital goods; 0.98% in intermediate goods; and 0.28% in consumer goods, with 0.34% of the change observed in durable consumer goods and 0.27% in semi-durable and non-durable consumer goods.

From the result of the general industry (0.70%), the influence of the major economic categories was 0.06 pp of capital goods, 0.53 pp of intermediate goods and 0.11 pp of consumer goods. In the case of consumer goods, 0.09 pp was due to changes in semi-durable and non-durable consumer goods and 0.02 pp in durable consumer goods.

Year-to-date, price changes cumulatived 1.05% up to February, with 2.33% in capital goods (with an influence of 0.17 pp), 2.32% in intermediate goods (1.24 pp) and -0.94% in consumer goods (-0.37 pp). In the latter case, the result was influenced by 0.06 pp by durable consumer goods and -0.43 pp by semi-durable and non-durable consumer goods.

In the annual rate, the price change reached the following results: capital goods, 7.57% (0.57 pp); intermediate goods, 5.89% (3.21 pp); and consumer goods, 7.47% (2.84 pp), with the influence of durable consumer goods being 0.25 pp and that of semi-durable and non-durable consumer goods, 2.58 pp.

Producer Price Indexes, by Mining and Quarrying and Manufacturing Industries (General Industry) and Major Economic Categories - Last three months

General Industry and Sections Changes (%)
M/M-1 Cumulative - year M/M-12
DEC/19 JAN/20 FEB/20 DEC/19 JAN/20 FEB/20 DEC/19 JAN/20 FEB/20
General Industry 0.65 0.35 0.70 5.19 0.35 1.05 5.19 6.36 6.62
Capital Goods (BK) 0.15 1.47 0.85 5.97 1.47 2.33 5.97 6.98 7.57
Intermediate Goods (BI) 0.16 1.33 0.98 2.87 1.33 2.32 2.87 5.58 5.89
Consumer Goods (BC) 1.42 -1.22 0.28 8.39 -1.22 -0.94 8.39 7.34 7.47
Durable Consumer Goods (BCD) -0.12 0.57 0.34 4.45 0.57 0.91 4.45 3.57 3.74
Semi- and Non-Durable Consumer Goods (BCND) 1.74 -1.58 0.27 9.23 -1.58 -1.32 9.23 8.16 8.28
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

The following sectors stood out:

Mining and quarrying industries: with the 5.51% change between January and February, the sector accumulates an 11.34% increase in 2020, which puts it in first place, in terms of change in relation to the general industry, in the cumulative index in the year. It is also the first in the February 2020/February 2019 comparison, with 26.76%. These results also led the sector to stand out in terms of influence: third in comparison with January 2020 (0.26 pp, at 0.70%; that is to say, it was the second rate in terms of change); and second, both in the cumulative result in the year (0.51 pp, at 1.05%) and in the cumulative index over 12 months (1.12 pp, at 6.62%).

When looking at the highlighted products, the positive changes prevailed in the three levels of analysis. Those products are important commodities and, in addition to their market behavior trends, they are affected by the exchange rate, i. e.,  depreciation of the real in February of 4.6%, of 5.6% in the cumulative index in the year, and, of 16.6% in the cumulative over the last 12 months.

Food: the average price change in the month-over-month comparison was 1.60%, which offsets the negative change in January (-1.91%), which had interrupted a series of five positive changes. In 2020, with the negative data for January and the positive for February, the cumulative change is -0.34%. In the 12-month perspective, the 11.45% result is only surpassed, in the same month, in February 2016, 15.67%.

The highlight given to the sector is mainly due to the influence on the result of the mining and quarrying and processing industries. It was the second in the comparison with January 2020 (0.37 pp, at 0.70%) and the first in the cumulative index in 12 months (2.54 pp, at 6.62%). It also presented the third largest change among all sectors of the industry, in terms of cumulative indexes in 12 months.

The four products that stood out in terms of influence in the February/January comparison accounted for 1.16 pp, in 1.60%. The products belong to two groups: “slaughter and manufacture of meat products”, whose change was 1.32%, therefore below the one observed for the sector as a whole; and “sugar manufacturing and refining”, with an above-average change, 5.79%.

Oil refining and ethanol products: in February, sector prices changed, on average, -6.34%, the most intense negative change since June 2019 (-7.24%). The cumulative index in the first two months of 2020 was -5.73%. Yet, February 2020 prices are 7.68% higher than February 2019.

The highlight given to the sector is due both to the fact that it was listed among the largest changes (the largest in comparison with January 2020, and the third in cumulative index) and among the greatest influences: first in comparison with the previous month (-0.68 pp, in 0.70%) and in the cumulative result (-0.61 pp, in 1.05%) and the third in the cumulative index over 12 months (0.76 pp, in 6.62%).

The changes in products related to oil refining were, among the highlighted products, all negative. The only positive change, which places the product “ethyl ethanol (anhydrous or hydrated)” among the greatest influences, is linked to the sugarcane off-season.

Basic metals: when comparing the average prices of February against January, there was a change of 2.81%, the second largest positive change since September 2018. This change was very similar to that which occurred between January and December, of 2.99%, bringing the cumulative in 12 months to 6.68%, a result still lower than that occurred in February 2019 (8.13%), but leading the cumulative in the year to 5.89%.

The result of the month was achieved thanks mainly to three products, one from the group of products in the steel sector and two from the group of basic metals of non-ferrous materials. They are: “carbon steel ingots, blocks, billets or plates”, “gold for non-monetary uses” and “aluminum oxide (calcined alumina)”, all of them with a natural positive influence on the month-on-month indicator. Together with those products is “stainless steel coils or sheets, including strips”, but with a negative price change. The four products represent 2.00 pp of the change in the month, with 0.81 pp for the other 20 products.

Of the four products highlighted in terms of influence on the result of the month, two appear both in the analysis of the cumulative index in the year and in the cumulative index in 12 months, they are: “hot coils of carbon steel, uncoated” and “gold for non-monetary uses”. The products “carbon steel ingots, blocks, billets or plates” and “aluminum oxide (calcined alumina)” were highlights in the cumulative of the year, while “ferroniobium” and “aluminum plates and strips, of a thickness greater than 0.2 mm” were highlights in the cumulative in 12 months. All of these products had positive price changes.

Motor vehicles: in February, the change observed in the sector was 0.21%, when compared to the previous month, following the upward trend observed also in the previous five months. With this result of the month-to-month indicator, the cumulative change in the year and the cumulative change in the last 12 months reached, respectively, 1.46% and 4.65%.
In addition to being one of the most important sectors in the calculation of the general indicator, with a contribution of 8.52%, the activity of motor vehicles also stood out, among all the sectors surveyed, for having the fourth largest influence in the cumulative indicator in the year. (0.12 pp, at 1.05%).

The “manufacturing of cars, vans and SUVs”, an economic group analyzed in the activity, presented, in February, a change of -0.07% in comparison with January, going the opposite way of the activity. This was the first negative result observed since August 2019 (when it changed -0.68%). In the first two months of 2020, this group accumulated a change of 1.14%, while in the last 12 months, the group had a result of 4.02%.

In an analysis by products in the sector, it is possible to observe that, among the four products of greatest influence in the comparison with January 2020, three of them had a positive impact on the index: “tractor truck, for trailers and semi-trailers”, “parts or accessories for the motor vehicles’ engine system” and “gear and transmission systems for motor vehicles ”. Only the product “gasoline or biofuel passenger cars, of any power”, precisely the product with the greatest weight in the activity, negatively influenced the result. The influence of these four products that most impacted the change of the month in relation to the month was 0.11 pp, that is, the remaining 19 products in the activity contributed with 0.10 pp.

In relation to the long-term indicators, cumulative index in the year and cumulative in 12 months, all four products of greater influence in the indexes are the same and have had a positive impact: “gasoline or bi-fuel passenger cars, of any power”, “ tractor truck, for trailers and semi-trailers ”,“ diesel truck with a load capacity above 5 t ” and “gasoline and/or ethanol vehicles for the transportation of goods with a load capacity not above 5 t”.