Producer Price Index (IPP) stands at -0.54% in November
January 04, 2023 09h00 AM | Last Updated: January 05, 2023 02h34 AM
Prices of industry in November 2022 dropped 0.54%. The cumulative index in the year reached 4.47% and the cumulative index in 12 months, 4.39%. In November, 9 of the 24 activities surveyed registered positive price changes from the previous month.
|Cumulative in the year||4.47|
|Cumulative in 12 months||4.39|
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).
|Producer Price Index, by Mining and
Manufacturing Industries (General Industry) and Sections, Brazil, last three months
|General Industry and Sections||Change (%)|
|M/M||Cumulative in the year||M/M|
|B - Mining and Quarrying Industries||-3.82||-3.44||-1.65||4.50||0.90||-0.76||-15.48||-16.56||-13.43|
|C - Manufacturing Industries||-1.79||-0.73||-0.48||6.02||5.25||4.74||11.53||7.95||5.44|
|Source: IBGE, Diretoria de Pesquisas, Coord. de Estatísticas Conjunturais em Empresas|
In November 2022, prices of industry fell by 0.54% from October. Nine of the 24 activities of industry surveyed recorded positive changes in price against the immediately previous month. On the other hand, 12 activities had recorded higher average prices in October against the previous month.
The four main changes were those of other chemicals (-4.41%); tobacco (2.38%); toiletries, soaps and cleaning products (2.04%); and printing (1.95%).
Other chemicals was the most relevant sector of industry in the compoaition of the aggregate result, in comparison with prices of November and October. The activity was responsible for -0.41 percentage points (p.p) of influence on the change in general industry (-0.54%). Also in this issue, other activities that also stood out were food products, with -0.17 p.p. of influence, petroleum refining and biofuels (0.12 p.p) and mining and quarrying industries (-0.08 p.p).
The cumulative index in the year reached 4.47%. In November 2021, this index stood at 28.55%. The cumulative rate in the year up to this reference month was the fourth lowest ever registered for a month of November since the beginning of the time series in 2014. Among the activities, which, in November 2022 recorded the highest cumulative changes in the year, among which are: pulp and paper (19.47%), printing (18.07%), petroleum refining and biofuels (17.50%) and beverages (16.80%). In the composition of the aggregate result of industry, from the perspective of this same indicator (cumulative in the year), the main influences were those of petroleum refining and biofuels (1.95 p.p.), food products (1.12 p.p.), other chemicals (-0.96 p.p.) and basic metals (-0.78 p.p.).
The cumulative index in 12 months reached 4.39% against 6.49% in October. The sector accounting for the four biggest price changes in the comparison between November and the same month a year ago were: printing (19.68%; beverages (17.53%; pulp and paper (17.34%); and manufacture of machinery and equipment (16.41%). The most influential sectors were: petroleum refining and biofuels (1.77 p.p.), food products (1.62 p.p.), basic metals (-1.02 p.p.) and mining and quarrying industries (-0.75 p.p.).
The change of -0.54% in relation to October had an impact on the major economic categories: capital goods, 0.47%; intermediate goods, -0.86%; and consumer goods, -0.20%, with 0.41%% observed in durable consumer goods and -0.32% in semi and non-durable consumer goods.
The main influence among the major economic categories was exerted by intermediate goods, whose weight in the overall index was 57.83%, and it accounted for -0.50 p.p. of the –.54% change in the mining and manufacturing industries.
Consumer goods (-0.07 p.p.) and capital goods (0.03 p.p.) complete the list. In the case of consumer goods, the influence was split into 0.02 p.p., due to changes in prices of durable consumer goods and -0.09p.p., of semi and non-durable consumer goods.
|Producer Price Indexes, by Mining and Quarrying
and Manufacturing Industries (General Industry) and Major Economic Categories, Brazil, last three months
|General Industry and Major Economic Categories||Change (%)|
|M/M||Cumulative in the Year||M/M|
|Capital Goods (BK)||0.58||0.79||0.47||9.53||10.40||10.92||14.84||13.64||12.85|
|Intermediate Goods (BI)||-2.35||-1.69||-0.86||5.69||3.90||3.01||10.21||5.16||2.53|
|Consumer Goods (BC)||-1.60||0.19||-0.20||5.68||5.89||5.67||8.26||7.35||5.91|
|Durable Consumer Goods (BCD)||0.30||0.29||0.41||6.57||6.88||7.32||9.57||8.41||8.13|
|Semi Durable and Non-Durable Consumer Goods (BCND)||-1.96||0.18||-0.32||5.51||5.69||5.36||8.01||7.15||5.48|
|Source: IBGE, Diretoria de Pesquisas, Coord. de Estatísticas Conjunturais em Empresas|
As for the cumulative index in the year, changes were 10.92%, in capital goods; 3.01%, in intermediate goods; and 5.67%, in consumer goods - with durable consumer goods having a cumulative change of 7.32% and semi-and non-durable consumer goods, with 5.36%.
Capital goods were responsible for 0.75 p.p. of the rate of 4.47% registered by the general industry up to November this year. Intermediate goods accounted for 1.76 p.p., whereas consumer goods accounted for 1.96 p.p. in the aggregated result of industry, an influence shared into 0.41 p. p, due to changes in durable consumer goods and 1.55 p.p due to changes in semi durable and non-durable consumer goods.
Considering the cumulative index in 12 months, the change of prices of capital goods was 15.51%. The prices of intermediate goods changed 2.53% in the period of one year and the change in consumer goods was 5.91%, in which durable consumer goods changed 8.13% and semi and non-durable consumer goods, 5.48%.
Concerning the influences on the aggregate result, consumer goods, with a weight of 34.88% in the overall index, accounted for 2.03 p.p. out of 4.39% of cumulative change in 12 months in industry, in the reference month. The result of November 2022 was also influenced by the rate of 1.49 p.p. in intermediate goods and of 0.87 p.p. in capital goods. The result of consumer goods was influenced in by durable consumer goods (0.45 p. p) and semi and non-durable consumer goods (1.58 p.p), the latter with a weight of 83.58% in the index of this major category.
Mining and quarrying industry: for the sixth consecutive months (and the seventh in the year), recorded negative changes against the immediately previous month, -1.65%. As a result, the cumulative index in the year stayed at -0.76%, first negative result in this analysis since April 2020 (-4.00%). In comparison with the cumulative index in the year in November 2021, the difference is significant; in 2021, prices rose 30.49% up to November. At last, -13.43% was the change in the comparison between November 2022 and November 2021, once more, sixth consecutive negative result, but the ninth in the year.
Food products: for the fourth consecutive month, a comparison of prices of one month, in the case of November, against the previous month, resulted in a negative change (0.70%). As a result, the cumulative change on the year stood at 4.72% (in November 2021 it was 16.13%). At last, the cumulative indicator in 12 months stayed at 7.00%, the lowest result since October 2019 (4.89%). These decreases of prices obsered since August 2022 led the index-number to 178.47, which would be among those observed in the months of March (175.95) and April (179.84). In terms of influence, the sector had the second most significant result in the three indicators calculated: -0.17 p.p., out of -0.54% (against October); 1.12 p.p., out of 4.47% (cumulative in the year); and 1.62 p.p., out of 4.39% (in 12 months).
Petroleum refining and biofuels: after three consecutive months with negative changes of prices, from October to November, the change was positive once again (1.01%, the lowest in the year). The cumulative result increased from 16.33% in October to 17.50% in November, a result below that observed in November 2021 (72.34%). In 12 months, the change was 15.69%, the lowest since January 2021 (-1.22%). It is worth mentioning that, in this analysis, prices are compared with those in November 2021, when the change was 81.50% against November 2020.
The sector recorded the third most significant positive change in the year and, in terms of influence, the third and only positive change in comparison with the previous month (0.12 p.p., out of -0.54%) and the first cumulative in the year (1.95 p.p., out of 4.47%) and cumulative in 12 months (1.77 p.p., out of 4.39%).
Other chemicals: in November, chemical industry was the main responsible for the fourth negative change observed in IPP, in the comparison between the month of reference and the immediately previous month. With prices -4.41% lower than those in October, the sector accounted for the main contribution to the overall result of industry: -0.41 p.p. The rate of -4.41% is also a highlight, for being the most significant (and the only negative one) among the highest absolute changes observed in the sectorrs surveyed.
In comparison with October, the sector keeps a sequence of fall in factory-gate prices starting in July in the year and has had a cumulative decrease of 16.29%. Important factors accounting for sector deflation are still noticed, such as the fall of prices of basic fertilizers in the global market of baphtha, which, in turn, would follow the track of international prices of the petroleum barrels.
Basic metals: in the comparison between November and October, the change in prices of this activity was -0.88%, eighth negative result in the hyear, the sixth negative one. This way the sector had a cumulative change of -10.83% in the year and of -13.75% in 12 months. Between December 2018 (base for the current sample) and November 2022, prices of the secor had a cumulative change of 67.02%, a figure very close to the overall IPP indicator for the same period (68.51%).
The sector stood out, in comparison with the 24 activities of the survey, as it accounted for the fourth highest contribution to the cumulative result in the year (with -1.78 p.p. out of 4.47% of Genrral Industry) and the third highest influence in 12 months (-1.02 p. p out of 4.39%).