The industrial prices changed -2.72% in June 2023 against May, the fifth negative figure in a row. In this same comparison, 19 out of 24 industrial activities dropped their prices. The cumulative index in the year stayed at -6.46%, the lowest one for June since the beginning of the time series in 2014. The cumulative rate in 12 months stayed at -12.37%, the biggest drop in the time series for this indicator.

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 the major economic categories.

The four highest changes in the monthly indicator were: mining and quarrying industries (-10.52%); petroleum refining and biofuels (-6.32%);  other chemicals (-5.01%) and pulp and paper (-4.40%). Food was the most relevant sector of industry in the composition of the aggregate result, in the comparison between June and May. This activity was responsible for -0.83 percentage points (p.p) of influence on the change of -2.72% in general industry.

Other activities that stood out were petroleum refining and biofuels (-0.64 p.p. of influence), mining and quarrying industries (-0.50 p.p.) and other chemicals (-0.40 p.p.).

The cumulative index in the year reached -6.46% against -3.84% in May. As a comparison, the cumulative rate up to June 2022 had been 10.12%. The cumulative rate in the year up to this reference month was the lowest ever registered for June since the beginning of the time series in 2014.

The highest cumulative changes in the year among the activities were: petroleum refining and biofuels (-23.30%), other chemicals (-16.98%), pulp and paper (-16.93%) and beverages (7.28%). The major influences came from petroleum refining and biofuels (-2,79 p.p.), other chemicals (-1,49 p.p.), food products (-1.22 p.p.) and pulp and paper (-0,57 p.p.).

The cumulative index in 12 months was -12.37%, the biggest drop in the time series of this indicator. This indicator had hit the mark of -9.02% in May. The four highest changes were: petroleum refining and biofuels (-35.21%); other chemicals (-32.38%); mining and quarrying industries (-31.95%); and basic metals (-16.53%). The most influential sectors for the aggregate result were: petroleum refining and biofuels (-4.68 p.p.), other chemicals (-3.26 p.p.) and mining and quarrying industries (-1.79 p.p.) and food products (-1.76 p.p.).

The change of -2.72% in the prices over May influenced the major economic categories in this way: -1.09% in capital goods (BK), -3.41% in intermediate goods (BI), and -2.02% in consumer goods (BC), being the change reported in durable consumer goods (BCD) of 0.14% and that in semi and non-durable consumer goods (BCND) of -2.45%.

The major influence among the major economic categories was exerted by intermediate goods, with a weight of 55.09% in the overall index and accounting for -1.89 p.p. of the change of -2.72% in mining and quarrying and manufacturing industries.

Consumer goods (influence of -0.74 p.p.) and capital goods (-0.08 p.p.) completed the list. In the case of consumer goods, the influence observed in June was split into 0.01 p.p., due the change in prices of durable consumer goods and -0.75 p.p., associated with the change in prices of semi and non-durable consumer goods.

In the cumulative index in the year, the change in the major economic categories reached: 1.31%, in the case of capital goods; -10.20% in intermediate goods; and -1.44% in consumer goods, in which durable consumer goods accumulated a change of 1.80%, whereas semi and non-durable consumer goods, -2.08%.

In terms of influence on the cumulative index in the year, capital goods accounted for -0.10 p.p. of the rate of -6.46% registered in the overall industry. Intermediate goods, in turn, accounted for -5.85 p.p., whereas consumer goods exerted an influence of -0.51 p.p. on the aggregated result of industry, an influence shared by prices of durable consumer goods (0.10 p.p.) and semi-durable and non-durable consumer goods (-0.61 p.p.).

Considering the cumulative index in 12 months, the change of prices of capital goods was of 3.61%.   The prices of intermediate goods, in turn, changed -18.43% in the period of one year and the change in consumer goods was of -4.99%, with durable consumer goods having changed by 3.72% and semi and non-durable consumer goods, -6.59%.

In terms of influence, capital goods accounted for 0.24 p.p. of the cumulative change of -12.37% in industry for 12 months. There was, also, an influence of -1.70 p.p. from consumer goods and of -10.91 p.p. from intermediate goods.

The result of consumer goods was particularly influenced by durable consumer goods (0.20 p.p.) and semi and non-durable consumer goods (-1.90 p.p.), the latter with a weight of 83.02% in the index of this major category.

Mining and quarrying industries - For the second month in a row, the prices of this sector registered a negative change in the monthly comparison (-10.52%). As a result, the cumulative index in the year moved from 4.82% in May to -6.20% in June. On the other hand, the cumulative indicator in 12 months was -31.95%, the second lowest rate in the time series, losing to January 2015 (-42.06%).

This sector stood out as it recorded the first negative change in the monthly indicator and the third negative change in the cumulative index in 12 months. In addition, it was the third influence on the June´s indicator over May (-0.50 p.p. in -2.72%) and on the cumulative indicator in 12 months (-1.79 p.p. in -12.37%).

Food products - The prices of food products fell 3.35% in June against May, the second consecutive negative change and the fourth one in the year. The most intense negative rate in the time series was that of August 2022 (-3.50%), causing the June´s rate to be the second one.

The cumulative index in the year changed -5.04%, a very different scenario from one year ago, when the change reached 7.89%. In the cumulative indicator in 12 months, the rate of -7.56% was the second most intense negative rate in the time series, approaching that of September 2017 (-7.57%).

The highlight in the sector was due to the fact it accounted for the major influence on the monthly indicator (-0.83 p.p., out of -2.72%) and the third one in the cumulative indicator in the year (-1.22 p.p., out of -6.46%) and the fourth one in the cumulative indicator in 12 months (-1.76 p.p, out of -12.37%).

The four products that mostly influenced the monthly result (-2.58% out of -3.35%) were: “VHP sugar”, “fresh or cooled beef”, “frozen poultry and giblets” and “residue of soybean oil extraction”, all of them with a negative change. The scenario of these changes is not quite different from that pointed out in May: crop harvested (in the case of soybeans and sugarcane, whose trading was normalized with less rainfall), and a high supply of bulls and chicken, as well as the real appreciated against the dollar (2.6% in the June against May comparison; 7.5% in the cumulative index in the year; and 3.9% in the cumulative indicator in 12 months).

Pulp and paper - This activity reported the fourth most intense change in the monthly indicator
(-4.40%).  As a result, the cumulative index in the year reached -16.93%, the third highest figure.  In relation to the last 12 months, the activity recorded -10.60%.  The four items that mostly influenced the monthly result accounted for -4.12 p.p. out of -4.40%.

Petroleum refining and biofuels - The prices in this sector retreated in the monthly comparison for the seventh month in a row, hitting -6.32%. As a result, the cumulative index in the year hit -23.30%, a very different situation than that of June 2022, when the cumulative index was 31.46%. In 12 months, the change was of -35.21%, the second most intense negative rate in the time series, losing only to May 2020, when it had been -36.01%.

This sector stood out as it recorded the second negative change in the monthly indicator and the first negative change in the cumulative index in the year and in 12 months. It was also the second influence for June in relation to May (-0.64 p.p. out of -2.72%), and the first influence both on the cumulative index in the year (-2.79 p.p. out of -6.46%) and on the cumulative rate in 12 months (-4.68 p.p. out of -12.37%).

Other chemicals - The prices of chemicals at the factory gate retreated for one more month, between May and June (-5.01%). As a result, this sector completed a series of 12 consecutive months of lows in this type of comparison, which also caused negative rates in the cumulative index in the year (-16.98%) and in the comparison with the same month a year ago (-32.38%).

The chemical industry stood out once again among the sectors surveyed by the IPP, appearing among the four highest absolute values in all the indicators surveyed, either due to the intensity of the price changes or due to its influence on the overall result of industry.

As happened in the previous month, the prices of fertilizers and petrochemicals reinforced in June to establish the aggregate negative rate of the sector.