In April 2020, industry prices changed, on average, 0.12% when compared to March/2020, a number lower than the one between March/2020 and February/2020 (0.84%). The cumulative index  in the year reached 2.13%, against 2.01% in March/2020. When comparing April 2020 with April 2019, the price change is 4.79%, against 5.95% of March 2020. In April, 20 of the 24 activities recorded positive price changes.

The Producer Price Index (IPP) for Mininga and Quarrying and Manufacturing Industries measures the evolution of 'factory gate' pricing of products, 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). The complete publication of the IPP can be accessed here.

In April 2020, the prices in the industry changed, on average, 0.12% when compared with March/2020. The four greatest changes recorded in April were in the following industrial activities: petroleum refining and ethanol products (-20.99%), computer equipment, electronics and optical products (5.63%), other transportation equipment (5.37%) and wood (5.26%). The major influences were: petroleum refining and ethanol products (-1.87pp), food (0.50 pp), basic metals (0.28 pp) and other chemical products (0.17 pp).

In April, the cumulative index of the year achieved 2.13%, against 2.01% in March/2020. The activities with the greatest percentage change were: petroleum refining and ethanol products (-32.68%), other transportation equipment (17.63%), basic metals (16.91%) and footwear and leather articles (16.56%). The major influential sectors were: petroleum refining and ethanol products (-3.48 pp), food (1.53 pp), basic metals (0.98 pp) and other chemical products (0.69 pp).

In the cumulative index of 12 months, the change was of 4.79%, against 5.95% in March/2020. The four greatest price changes were in petroleum refining and ethanol products (-30.20%), other transportation equipment (23.69%), food (16.93%) and tobacco (15.80%). The major influences were: food (3.72 pp), petroleum refining and ethanol products (-3.18 pp), basic metals (0.91 pp) and other chemical products (0.51 pp). 

Among the Major Economic Categories, the price changed 0.12% in relation to March as it follows: 2.68% in capital goods; 1.08% in intermediate goods; and -1.75% in consumer goods, with 1.27% recorded in durable goods and -2.38% in semi-durable and non-durable goods.

In the results of the general industry, the influence was: 0.21 pp in capital goods, 0.58 pp in intermediate goods and -0.67 pp in consumer goods. In consumer goods, -0.76 pp regards to semi-durable and non-durable goods and 0.08 pp regards to durable goods.

In the cumulative index of the year, the price changes in industry accumulated, until April, a change of 2.13%, with 7.92% in capital goods (with influence of 0.59 pp), 4.06% in intermediate goods (2.17 pp) and -1.62% in consumer goods (-0.63 pp). In the last one, the result had an influenced of 0.17 pp in durable goods and -0.80 pp in semi-durable and non-durable goods.

In the comparison April 2020/April 2019, the price change in industry achieved 4.79% with the following change: capital goods, 11.50% (0.85 pp); intermediate goods, 5.01% (2.72 pp); and consumer goods, 3.18% (1.22 pp), with 0.29 pp from durable goods and 0.92 pp from semi-durable and non-durable goods.

The highlights are as follows:

Food: in April, the sector prices advanced 2.09%, the third positive result in a row. With this result, the cumulative index of the year achieved 6.51%, the highest recorded in the month. In the comparison with April 2019, the change was of 16.93%, against 16.03% in March. The sector represents one of the biggest contribution among the categories, moreover, it recorded the third sharpest change in the perspective of 12 months, with the major influence (3.72 pp in 4.79%) in this indicator, and the second influence both in the monthly comparison (0.50 pp in 0.12%) and in the cumulative index of the year (1.53 pp in 2.13%).

In April, the index-number was 117.32, which means a change in relation to the  beginning of the series (December 2009) of 126.59%. It is the third biggest change among the activities in the manufacturing industry (with a change of 75.95%), surpassed by Tobacco (162.90%) and Other transportation equipment (147.02%). It is worth mentioning that both sectors with the highest increase of prices since 2009 are related to the exchange rate movements, which, in the same period, recorded a depreciation of the Real of 104.3% against the Dollar.

The depreciation of the Real against the Dollar of 9.0%, in the comparison between April and March, is a strong coefficient for the positive change in the prices of products with major influences, all of them focused on the foreign market.

Petroleum refining: The series present the worst two negative results in the series (-9.63% in March against February), with a change of -20.99% in the comparison between April and March. Regarding the negative results in February (-6.34%), the cumulative change in the last three months was of -33.12%, sharper than the cumulative index of the year, -32.68%. In the last 12 months, the change was of -30.20%, the sharpest since the beginning of the series. The sector’s data are aligned with the decrease of the international price of petroleum. The highlighted sector represents one of the activities with the highest contribution to the result and was the first in five out of six surveyed indicators in the analysis (in all changes and in the influences of the monthly index, -1.87 pp in 0.12%, and in the cumulative index of the year, -3.48 pp in 2.13%). Regarding the influence in the cumulative index of 12 months, it was the second, -3.18 pp in 4.79%.

Other chemicals: in April, the prices in the sector changed, on average, 2.12%. March had the greatest positive change in prices since the beginning of the survey in December 2009. The sector accumulated positive changes of 8.86% in 2020 and 6.32% in the last 12 months. The result in the cumulative of the year is distinct from April 2019, when it recorded a negative result of -4.32%.

The recorded results in the last months are related to the international prices, with the increase of prices of many imported raw materials, mostly due to the depreciation of the Real against the Dollar (22.7% in the last two months) and the supply decrease. However, the price of products like naptha, which is the raw material of some chemical products (specially the organic chemical products, as the “benzene”) decreased significantly.

Basic metals: the average prices in the sector changed 4.40%, the second biggest price change in this activity since the beginning of the series (January 2010), surpassed only by the previous month (5.74%). The cumulative index in the year was of 16.91% and in the 12 months was of 15.02%. Among the highlighted products were: “carbon steel ingots, blocks, billets or plates”, “gold for non-monetary purposes”, “aluminum oxide (calcined alumina)” and “ferroniobium”, all of them with positive influence over the monthly indicator. The four products represented 3.61 pp in the monthly change, and the other 20 products, 0.79 pp.

Vehicles: in April, the change was of 1.05%, following the upward trend also noticed in the seven previous months. The cumulative change of the year and the cumulative change of the last 12 months achieved, respectively, 3.50% and 6.07%.

In an analysis by products in the sector, it is possible to observe that, among the four products with the greatest influence in the monthly index, all of them impacted positively the index: “ gasoline or biofuel powered cars, of any engine displacement”, “gear and transmission systems for motor vehicles”, tractor truck, for trailers and semi-trailers”, and “parts or accessories for motor vehicles’ engine system”. The average increase recorded in the last two months might be a consequence of the exchange change in the month, when the Real showed depreciation of 9.0%, and the cost increase, due to price rising in the basic metal industry. The influence of those four products with the greatest impact in the monthly change in relation to the immediately previous month was of 0.77 pp, which means that the other 19 products in this activity contributed with 0.28 pp.