In November 2020, industry prices rose 1.39% against October 2020. A total 19 of the 24 activities surveyed recored price rises. The cumulative index in the year reached 18.92% and the cumulative index in 12 months reached 19.69%.

Producer Price Index (IPP) of Mining and Quarrying and Manufacturing Industries measures the change in "factory-gate prices", without tax or freight and encompasses major economic categories: capital goods, intermediate goods and consumer goods (durable, semi-durable and non-durable).

In November 2020, industry prices rose, on the average, 1.39% against October 2020, in a month that registered the biggest increase (3.41%) in the time series for this indicator, initiated January 2014. The four biggest changes were those of furniture (4.03%), rubber and plastic (3.58%), tobacco (-2.91%) and food products (2.76%). Other contributions came from food products (0.71 p.p.), oil refining and alcohol products (0.15 p.p.), basic metals (0,14 p.p.) and rubber and plastic (0.13 p.p.).

Cumulative IPP in the year reached 18.92%, against 17.29% in October 2020. The activities recording the biggest changes in this perspective were: mining and quarrying industries (47.23%), food products (32.01%), basic metals (31.83%) and wood (31.07%). Among the most influential sectors were: food products (7.53 p.p.), mining and quarrying industries (2.13 p.p.), basic metals (1.85 p.p.) and other chemicals (1.78 p.p.).

In terms of the cumulative index in 12 months, price change reached 19.69%, after 19.09% in October. The four biggest price changes were those of mining anmd quarrying industries (43.52%), fod products (35.19%), basic metals (31.08%) and wood (29.92%); whereas the most influential sectors were food products (8.13 p.p.), mining and quarrying industries (2.02 p.p.), basic metals (1.83 p.p.) and other chemicals (1.66 p.p.).

The price change of 1.39% against October had the following effects in relation to the major economic categories :0.28% (capital goods); 1.45% (intermediate goods); and 1.52% (consumer goods), being 0.85% the change observed in durable consumer goods and 1.66% in semi and non-durable goods.

The influence of Major Economic Categories on IPP was: 0.02 p.p. (capital goods); 0.81 p.p. (intermediate goods) and 0.56 p.p. (consumer goods). In the case of consumer goods, 0.05 p.p. was due to price changes observed in durable consumer goods and 0.51 p.p. in semi and non-durable goods.

In terms of cumulative index in the year, price changes in industry reached, up to November, a change of 18.92%, being 17.68% in capital goods (with an influence of 1.32 p.p.), 23.75% in intermediate goods (12.69 p.p.) and 12.56% in consumer goods (4.91 p.p.). In the last case, that result was influenced by 0.69 p.p. semi and non-durable goods.

In the November 2020/November 2019, the change of industry prices reached 19.69%, with the following changes: capital goods, 17.86% (1.34 p.p.); intermediate goods, 23.95% (12.86 p.p.); and consumer goods, 14.15% (5.49 p.p.), with influence from durable consumer goods of 0.68 p.p. and from semi and non-durable goos of 4.81 p.p.

See the highlights below: 

Mining and quarrying industry: after seven positive results, the November/October change was negative (-2.05%). As a result, the cumulative index in the year fell by 50.31%, in October, to 47.23%, in November. In terms of the cumulative injdex in the year, there was decrease as well, with a change from 53.64%, in October, to 43.52%, in November.

The highlight in the sector was due to the fact it recorded the biggest change in the year and cumulative in 12 months, and the second main influence on the same indicators (2.13 p.p. and 2,02 p.p., respectively).

Food products: in November, prices of the sector changed, on the average, by 2.76%, the fifth consecutive increase, although that was was the lowest one between them (in October it was 4.67%). As a result, in terms of the cumulative in the year changed from 28.46%, in October, to 32.01%, the biggest change in November and in any point in the series. Finally, in the November 2020/November 2019 comparison, the latest prices were 35.19% higher. 

The highlight given to the sector took place since, in terms of change, it was the fourth biggest comparison with October, and the second versus December 2019 and against November 2019. In terms of influence, it in the three comparisons, with influence on the monthly result of 0.71 p.p., out of 1.39%; on the cumulative result in the year of 7.53 p.p., out of 18.92%; and of 8.13 p.p. on the cumulative index in 12 months, out of 19.69%.

Despite the appreciation of real against the dollar in November (3.7% against October), the foreign market remained having an impact on the sector prices. 

Groups that deal with soybeans, sugarcane and rice recorded changes above the sector average. Prices of the sector rose 2.76% against the previous month and the changes in “slaughter and manufacture of meat products” (4.98%) and “manufacture of vegetable oils and animal fats” (2.80%).

In terms of cumulative indexes in the year (32.01%), the average change of products of “manufacture of vegetable oils and animal fats” was of 66.66%; that of products of “grinding, manufacture of starchy products and animal food”, 40,59%; and “manufacture and refining of sugar” 35.60%.

In terms of the cumulative index in the year, above 35.19%, were “manufacuture of vegetable oils and animal fats” (70.95%) and “grinding, manufacture of starchy products and animal food” (41.41%).

Oil refining and alcohol products: with the second consecutive increase (1.91%) against the previous month (versus 2.35% in October), the cumulative index in the year went from -11.94% in October to -10.26% in November. The cumulative index in 12 months remained negative (-6.74%), with a less significant decrease than in October (-8.92%).

The highlight of the sector was due to the second biggest result against the previous month, 0.15 p.p., out of 1.39%.

In general terms, price changes were positive, both in terms of products relevant due to changes (which are among the ones with the lowest weight on the aggregated calculation in the sector), and due influence (highest weight). The only exception, with an impact on influence is “motor gasoline for other uses, except for aviation".

Other chemicals: chemical industry, in November, recorded an average change of prices, against October, of 0.79%, the fifth increase in a row, but the lowest positive result in the year. This way, the sector had a cumlative increase of 23.04% in 2020, 28 p.p. above the cumulative result up to November 2019 (–4.89%). That cumulative increase was the second highest in the IPP series for the months of November, only overcome by the result in November 2018 (23.5%). The  cumulative index in 12 months reached 20.90%, the highest figure since November 2018 (23.47%). These results are mainly related to the rise of international prices and the depreciation of real currency against the  depreciação do real dollar in 2020, which reached 31.9%.

In terms of economic groups of activity, the highlights were changes occurred in “manufacuture of resins and elastomers”, with 4.51%, with a cumulative 53.02% of change in the year and of 48.25% cumulative in the last 12 months. Another economic group which should be highlighted is “manufacture of inorganic chemicals”, with 0.09% in the month, of 19.60% in the year and  17.14% in 12 months. Finally, the group “manufacture of fertilizers and sanitary disinfectants” reached, in the monhth, a negative change of -2.78%; 12.04% in the year and 11.67% in 12 months.

In relation to the four most influential products on the monthly result (0.12 p.p. in 0.67%), there was an increase in both of them: “vinyl polychloride (PVC)” and “polypropilene (PP)”. However, “NPK fertilizers” and “herbicides for use in agriculture", recorded on the average, fall of prices.

Rubber and plastic: manufacture of rubber products and plastic material recorded an average price change of 3.58% in the November indicator against the previous month.e change in a row, the highest in the entire time series, which started in December 2009, and took place after two record figures in the sector so far (2.76% in September and 3.02% in October).

That change in November against the previous month was the second highest, among all the sectors analyzed in the survey, besides accounting for the fourth highest index.

As a result, the activity had, in 2020, a change of 16.09%, the biggest result in the sector in this indicator in all the time series. For the sake of comparison, in 2019, the sector had a cumulative change of 0.46% up to the end of November. And in terms of the cumulative result in 12 months, the November figure was a highlight with the highest in the change for the indicator, 15.62%.

Among the most influential result against the previous month, all of them belong to the group “manufacture of plastic material” and had a positive impact on the indicator. They are: “plastic tubes for civil construction”, “plastic material films (including BOPP) for packaging”, “plastic bags for packaging or transportation” and “plastic articles for domestic use”. Among these four products, together, they were 1.78 p.p. of the IPP change against October (3.58%). That is, the other 27 products of the activity accounted for 1,80 p.p.

Basic metals: against October, there was an increase of 2.24%, the fifth positive rate in a row for this activity. With this result, basic metals had, in the year, a cumulative result of 31.83% and, in the last 12 months, 31.08%. The two cumulative figures are the biggest in this activity in the entire IPP series since 2010. An analysis of index figures indicates that, between December  2018 (current series base) and November 2020, prices of the sector had a cumulative change of 29.61%.

Considering the economic groups of activity, basic metals recorded a change of 5.16%, thus with a cumulative 33.61% of change in the year and 30,90% cumulative in the last 12 months.

From the perspective of products that exerted biggest influence on the monthly result, there was a rare case in which the influence of the four most relevant products followed an opposite direction, with -0.04 p.p. versus a total change of 2.24%. That occurred due to the rise of average prices of “gold for non-monetay uses” and “ironiobium”, a decrease that was not fully surpassed by the increase of prices of  “carbon steel ingots, blocks, rods or plates” and “aluminium plates and strips, more than 0.2 mm thick”.