In January 2023, prices advanced 0.29%. In 12 months, they reached 2.24%. In January, 14 of the 24 activities surveyed recorded positive price changes from December 2022.

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 January 2023, prices rose 0.29% from December 2022. A total of 14 of the 24 activities surveyed recorded positive price changes against the previous month. On the other hand, 11 activities had recorded higher average prices in December against the previous month.

The four biggest changes are attributable to prices of mining and quarrying industry (9,62%); beverages (5.30%); pulp and paper (-3.37%); and footwear and leather products (-2.25%).

Mining and quarrying industry was the most relevant sector of industry in terms of the aggregate result, against December. The activity accounted for 0.42 percentage points (p.p) of contribution to general industry ( 0.29%). Also in this respect, other activities that also stood out were petroleum refining and biofuels, accounting for -0.18% (0.12 p.p) and food products (0.12 p.p).

The cumulative index in 12 months reached 2.24% against 3.16% in December. The sectors accounting for the four biggest price changes in the comparison November 2022/November 2021 comparison were: perfumery, soaps and cleaning products (16.66%); beverages (16.54%; orinting (16.07%); and manufacture of machinery and equipment (13.64%). Also, as for the cumulative index in 12 months, the most influential sectors to the aggregate result were:food products (1.34 p.p.); other chemicals (-1.32 p.p); petroleum refining and biofuels (0.79 p.p) and basic metals (-0.74%).

The change in prices (0.29%) against December 2022 had an impact on major economic categories: capital goods, -0.07%; intermediate goods, 0.35%; and consumer goods, 0.28%, being 0.55 % for durable consumer goods and 0.23 for semi and non-durable consumer goods.

Intermediate goods, accounting for 57.83% of the overall index, represented the main contribution to the index, and it accounted for 0.20 p.p. of the 0.29% change in mining and manufacturing industries.

Consumer goods, responsible for 0.10 p.p. and capital goods, for 0.00 p.p., complete the list. In the case of consumer goods, the influence is split into 0.03 p.p., due to change in prices of durable consumer goods, and 0.07 p.p., related to price changes in semi-and non-durable consumer goods.

As for the cumulative index in 12 months, the change in prices of capital goods amounted to 9.21% in January 2023. The prices of intermediate goods changed -0.47% in the one-year interval and the change in consumer goods reached 5.50%.

Considering the influences on the aggregate result, consumer goods, responsible for 35.16% in the general index, accounted for 1.87 p.p. of the 2.24% of cumulative change in 12 months in industry, in the reference month. The result of January 2023 was also influenced by the rate of 0.64 p.p. in capital goods and of -0,28 p.p. in intermediate goods. The result of consumer goods was mainly influenced in by durable consumer goods (0.35 p. p) and semi and non-durable consumer goods (1.52 p.p), the latter accounting for 83.52% of the index in this major category.

Mining and quarrying industry: In the comparison between January 2023 and December 2022, prices of this sector of mining and quarrying industr changed, on the average, 9.62%. That is the first positive result since May 2022, when it recorded 12.55%. With the result of January, the cumulative index in 12 months was -7.85%, a little less tha observed in the end of 2022, -7.92%. The highlight given to the sector was due to the fact that, among all activities of mining and quarrying industry, recorded the most significant and positive change, and accounted for the main influence in the same perspective (0.42 p.p., out of 0.29%).

Food products: in January 2023, prices of the sector changed, on average, 0.48% in relation to December 2022, making more significant the rise observed from November to December (0.28%). As a result the cumulative index in 12 months, which had closed 2022 at 5.03%, advanced to 5.74%. The sector was the fourth main contribution from January 2023 against December 2022 (0.12 p.p. out of 0.29%) and the first one cumulative in 12 months (1.34 p.p., out of 2.24%).

As we observe the behavior of groups explored in the survey, in the comparison between January 2023 and the immediately previous month, three groups recorded changes above 0.48%: “dairy products” (5.86%), “grinding, manufacture of starchy products and of pet food” (1.39%) and “manufacture and refining of sugar” (3.22%). It is worth mentioning that prices of “slaughter and manufacture of meat products” changed by -2.90%.

In the comparison between January 2023 and January 2022, the sectors whose prices changed above the result of the sector (5.74%) were: “dairy products” (24.80%) and “grinding, manufacture of starchy products and pet food” (16.90%). Once more, the change of prices of “slaughter and manufacture of meat products” was on the opposite direction, with a cumulative change of -2.91% in 12 months.

Beverages: Prices in the beverage sector rose 5.30% from the previous month, and the highlight was the second biggest change in the country and the third main influence among all. This result is also the thirds biggest change since the beginning of the series in 2010 (lower than in October 2015 and September 2014, with 9.57% and 7.08% respectively) and the biggest change for a month of January in this series. In comparison with January 2022, there was a chnge of 16.54% in prices. That is the second biggest change among other activities and one more reasons for a highlight in the month.

Petroleum refining and biofuels:from December to 2022 to January 2023, prices of the sector changed, on the average, -1.50%, a negative result as in December (-5.48%), but with lower intensity. In 12 months, the change was 6.69%, the lowest since January 2021 (-1.22%). The highlight of this sector, in terms of influence, was a highlight as the second highest in comparison with the previous month (-0.18 p.p., out of 0.29%) and the third highest cumulative in 12 months (0.79 p.p., out of 2.24%).

Other chemicals: in January, the prices of chemicals fell for the seventh consecutive month against the previous month. With a change of -1.18%, the sector had a cumulative decrease of 19.51% in prices since July last year. The sequence of negative changes that prevailed in the second semester of 2022 had an impact on the cumulative change in 12 months of this sector which, eith a rate of -13.04%, accounted for the second main contribution to the overall result of industry in this indicator: -1.32 percentage points.

In the definition of results of the economic grouos whose figures are disclosed, together with the current and cumulative exchange appreciation, the dynamics induced by international prizes is predominant even agains the latest recovery of prices of naphtha and petroleum barrels. That is the case of “manufacure of inorganic chemicals”, manufacture of resnins and elastomers”, and manufacure of pesticides and household disinfectants, all of which had lower prices in January, compared to December.

Basic metals: in the comparison between January 2023 and December 2022, the change of prices of this activity was 0.11%, first positive result after seven months of decrease. Therefore, in the last 12 months, the secor has had a cumulative change of -10.59%, a less significant drop than in the preceding month for the same indicator (-12.00%), and yet still far from the result of January 2022, when the sector had had a cumulative rise of 31.65% in the last 12 months. . And it was in terms of the cumulative indicator that the sector stood out this month, having accounted for the fourth main influenfe among the 24 activities surveyed within the IPP< with -0.74 percentage points out of 2.24% of the change in General industry.

Differently from what took place in the sector, the economic group of steel kept a negative result and recorded a decrease for the eighth consecutive month against the preceding month: -0.10% in January. In the last 12 months, this sector had a cumulative change of 6.58%. Again, this result was very different from that of June, when the group had a cumulative change of 37.06%. It is worth mentioning tht the steel group is mainly affected by the recomposition of stocks in the consuer chain and by prices of iron roe which, despite the rise in January, it still has lower prices in the 12-month comparison. Besides, the appreciation of real versus the dollar, of 0.8% in the month and 6.0% cumulative in the last 12 months.