In April 2022, industry prices rose 1.94% from March, a figure below that recroded in the March/February comparison (3.12%). The cumulative index in the year reached 6.94%. In 12 months, 18.00%. In April, 18 of the 24 activities surveyed recorded increases.

The Producer Price Index - IPP of the Mining and Manufacturing Industries measures the evolution of the prices of products "at the factory gate", free from taxes and freight, and encompasses information by major economic category, i.e., capital goods, intermediate goods and consumer goods (durable and semi and non-durable).

In April 2022, prices of industry rose 1.94 % from March. The four biggest changes were recorded by: mining and quarrying industry (-11.54%); petroleum refining and biofuels (6.57%); pharmaceuticals (6.51%); and basic metals (6.00%). Petroleum refining and biofuels (0.80 percentage points); mining and quarrying industry (- 0.70 p.p.), other chemicals (0.45 p.p.) and food products (0.44 p.p.) were the main influences.

The cumulative index in the year reached 6.94% against 4.91% recorded in March 2022. Petroleum refining and biofuels (22.80%), mining and quarrying industry indústrias extrativas (16.19%), other chemicals (9.24%) and beverages (8.72%). On the other hand, the most influential sectors were: food (2.27 p.p.), petroleum refining and ethanol products (1.88 p.p.), mining and quarrying industries (0.57 p.p.) and other chemicals (-0.56 p.p.).

The cumulative index in 12 months was 4.94% in March. The four biggest changes were recorded by: petroleum refining and biofuels (52.14%); otehr chemicals (37.04%); manufacture of machinery and equipment (22.56%); and metal products (21.75%). The sectors that exerted the biggest influence were: petroleum refining and biofuels (5.17 p.p.), food products (3.85 p.p.), other chemicals (3.33 p.p.) and motor vehicles (1.01 p.p.).

The change of 1.94% from March had an impact on the major economic categories as follows: capital goods, 0.14%; intermediate goods, 1.31%; and consumer goods, 3.37%, with 1.86% observed in durable consumer goods and 3.66% in semi and non-durable consumer goods.

Consumer goods represented the main influence among the major economic categories, whose weight in the overall index of January was 34.46%. It accounted for 1.15 p.p. of the 1.94% change in mining and quarrying and manufacturing industry. Intermediate goods (influence of 0.78 p.p.) and capital goods (0.01 p.p.) complete the list. In the case of consumer goods, the influenced reported in April was split into 0.10 p.p., for durable ggods and 1.05 p.p., for semi and non-durable goods.

As for the cumulative change in the year (6.94%), figures were 3.59%, for capital goods; 7.38%, intermediate goods; and 6.87%, consumer goods - with in which durable consumer for durable goods and 7.46% for semi and non-durable goods.

In terms of influence on the cumulative result up to April, capital goods accounted for 0.25 p.p. of the rate of 6.94% registered by general industry. Intermediate goods accounted for 4.33 p.p., and consumer goods contributed with 2.37 p.p. to the aggregated result of industry, an influence shared by durable consumer goods (0.21 p.p.) and semi-durable and non-durable consumer goods (2.16 p.p.).

Considering the cumulative index in 12 months, the change of prices of capital goods was 15.51%. The prices of intermediate goods, in turn, changed by 18.13% the change in consumer goods was 18.25%, with proces of durable consumer goods changing 13.88% and those of semi and non-durable consumer goods, 19,10%.

In relation to contribution, intermediate goods, accounting for 58.90% in the calculation of the general index, was responsible for 10.67 0p.p of the 18.00% of cumulative change in 12 months. There was, also, an influence of 6.27 p.p. from consumer goods and of 1.05 p.p. from capital goods. In the latter case, the result was influenced in 0.78 pp by durable consumer goods and 5.50 pp, by semi- and non-durable consumer goods.

Mining and quarrying industry:  since December 2021 (-12.77%) there had been no negative change in prices of the sector before April (-11.54%). The cumulative index in the year reached 16.19% and the cumulative index in 12 months, -10.95%, the third negative result in a row in this comparison. The last time a negative result was registered befire that was in July 2016, -11.88%.

This sector was a highlight because of the most significant change in the April/March comparison (the only negative result among the four categories surveyed) and the second most significant in terms of cumulative results. . In terms of influence, it was the second in the monthly indicator (-0.70 p.p., out of 1.94%) and the fourth cumulative in the year (0.79 p.p., out of 6.94%).

The two products accounting for the biggest weight “crude petroleum oil” and “iron ore and its cencentrated forms, for example, pellets/sintered”, recorded negative price changes (which had not occurred since December 2021), in line with the international market.

Food products:  third month in a row with positive changes in prices, 1.87%. As a result, the cumulative change up to April was 5.17% and, in 12 months, 16.23%.

The highlight in the sector was due to the fact it accounted for the fourth main influence on the monthly indicator (-0.70 p.p., out of 1.94%) and the fourth one in the cumulative indicator in the year (0.79 p.p., out of 6.94%) and cumulative in 12 months (3.85 p.p, out of 18.00%).

In April, there was appreciation of the real (4.2%) against the dollar (in the year, appreciation is of 15.8% and, in 12 months, of 14.5%), and had a negative impact on the prices of commodities, such as “residue from soybean extraction”, the only product that recorded negative change of prices. Besides currency, the end of the harvest also affected the product. The prices of other products (“meat and poultry giblets”, “sterilized milk / UHT / Long Life” and “VHP sugar (very high polarization)”) were affected due to supply issues. Obtention of milk from dairy basins has been low and, at the same time, costs have risen. That has an effect on the prices of sterilized milk. The prices of sugar amd poultry meat, in spite of the appreciation of our currency, real, have risen due to the demand from the international market. The four most influential products accounted for 030 p.p., out of 1.87%, which means that que significa que 1.57 p.p. was the influence from other 39 products that form the sample of the sector.

From the six groups, only two had, from march to April, price changes below the average, “manufacture of oils and animal and vegetable fats”, -1.96%; and “manufacture and refining of sugar,” 0.22%. In terms of weight, these products were only second to “slaughter and manufacture of meat products”, whose change amounted to 2.96%, the third biggest one - after “dairy products” (8.69%) and “coffee roasting and grinding” (3.73%). In the cumulative index in the year, whose rate is 5.17%, once again two sectors recorded changes below below average, “slaughter and manufacture of meat products” (2.30%) and “manufacture and refining of sugar” (-9.55%), with the biggest change recorde in dairy products (23.99%). In the April 2022/2021 comparison, below 16.23% are, once more, “slaughter and manufacture of meat products” (10.75%) and “manufacture and refining of sugar” (8.99%), besides “grinding, manufacture of starchy products and animal feed” (15.98%).

Petroleum refining and alcohol products: : the sector had the fourth consecutive positive rate, 6.57%. The cumulative index in the year reached 22.80% and the cumulative index in 12 months, to 52.14%.

The sector stood out for having the second biggest change in the monthly indicator (and the first one was the negative change of prices of mining and quarrying industry), the firstchange in the cumulative index in the year and in 12 months and for being the bigeest influence in the three indicators: monthly (0.80 p.p., out of 1.94%); cumulative in the year (2.54 p.p., out of 6.94%); and cumulative in 12 months (5.17 p.p., out of 18.00%).

“Diesel” and “gasoline, except for aviation”, two products representing the biggest weight in the calculation, are not among the main price changes from March to April, but are among the main influences in the three indicators.

Other chemicals: chemical industry, in April, recorded a change of 4.37%, with cumulative change of prices of 10.39% in the last two months. The results are mainly associated with international prices, with an impact on costs of acquisition of raw material, mainly of products related to fertilizers and herbicides.

The sector stood out with the third main cumulative change of prices in the year, and the second cumulative in 12 months, besides being the thirds main influence in the month, cumulative in the year and in 12 months.

The main items accounting for the month’s result are products in the group “manufacture of inorganic chemical products”, which recorded an average change of 4.10% in the month, and “manufacture of pesticides and household disinfectants”, which changed by 8.58% in the month. “Manufacture of resins and elastomers” changed by 3.39%.

This way, the cumulative index in the year reached 9.24%, with the same performance of previously described groups, and an average change of -9.24% in products of “manufacture of resins and elastomers”. The results of “manufacture of inorganic chemicals” and “manufacture of pesticides and household disinfectants” were, respectively, 14.30% and 34.03%.

Concerning the result in the last 12 months, the main highlight was the group of inorganic chemicals, more specifically with the cumulative price rise in manure/fertilizers, caused by the significant increase of inputs, due to the smaller production of fertilizers in the foreign market. The change of prices, in this group, amounted to 96.20%, followed by a change of 45.02% in “manufacture of fertilizers and household disinfectants”, both representing positive contributions to the change of 37.04% in 12 months.

Vehicles: in April, the change observed in the sector was 1.85%, 22nd positive result in this indicator. In the year, the sector had a cumulative change of 4.86%. The cumulative change in the last 12 months was 14.86%, above the 13.62% observed in March.

The activity stood out as the fourth main influence of the cumulative result in 12 months, this time with 1,01 p.p. out of 18.00% of General Industry.

The economic group analyzed, “manufacture of cars, pick ups and SUVs” changed, in April, by 2.31% in comparison with March. Like the sector, this was the 22th consecutive positive figure in this indicator. And the April result is also the biggest change observed in the group since the beginning of the series, in January 2019. Also, the group has recorded a cumulative change of 4.42% in the first four months of 2022, whereas it recorded 13.33% in the last 12 months. It is worth mentioning that the cumulative indicators in the year and in 12 months recorded results below the average of the sector.

Among the four main contributions to the monthly index, three accounted for positive impacts on the index: ““passenger cars, gasoline, alcohol or biofuels”, “diesel trucks with a capacity bove 5t” and “chassis with engine for buses or trucks.” The product “tractor-trucks for trailers and semi-trailers” was a highlight with negative impacts on the indicator, due, to some extent, to the apreciation of the real againt the dollar (4.2%). The influence of the four products that exerted major impacts on the monthly change against the previous year was 1.45 p.p.