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 (durable and semi- and non-durable) consumer goods. 

In July, the prices of mining and quarrying and manufacturing industry (general industry) changed by 1.13% against June, a result below that of June/May (2.27%).

The four biggest changes observed in July/2018 came from the following activities: other chemicals (4.98%), toiletries, soaps and cleaning products (2.37%), mining and quarrying industry (2.37%) and metal products (1.89%).

In terms of influence, in the comparison between July/2018 and June/2018 (1.13%), the highlights were other chemicals (0.51 p.p.), basic metals (0.15 p.p.), mining and quarrying industry (0.10 p.p.) and motor vehicles (0.40 p.p.).

The cumulative index in the year (July/2018 versus December/2017) reached 9.84%, against 8.61% in June/2018. Among the activities that registered the highest percentage changes in this indicator, the highlights were: mining and quarrying industries (23.55%), other chemicals (20.74%), oil refining and ethanol products (16.17%) and basic metals (13.47%). The most influential sectors were: other chemicals (2.00 percentage points), oil refining and ethanol products (1.85 percentage points), food products (1.64 percentage points) and basic metals (1.08 percentage points).   

The cumulative index in 12 months (July/2018 versus July/2017) reached 15.89%, against 13.44% in June/2018. The four biggest price changes were recorded in mining and quarrying industries (65.79%), oil refining and ethanol products (42.41%), other chemicals (29.32%) and basic metals (21.63%). The sectors that exerted the biggest influence were: oil refining and ethanol products (4.18 p.p.), other chemicals (2.78 p.p.), mining and quarrying industries (2.02 p.p.) and basic metals (1.70 percentage points). 

Among the main economic categories, in July, the change in prices (1.13%) resulted in: 1.57% in capital goods; 1.56% in intermediate goods; and 0.25% in consumer goods, 0.43% in durable consumer goods and 0.19% in semi and non-durable goods. 

The highlights came from the following sectors:

Other chemicals: chemical industry, in July, recorded an increase of 4.98%, against the June figure, the highest result since March 2015 and the biggest change among all the activities analyzed by the IPP, completing a total eleven months followed by rise of prices.  As a result, there was a positive change of 20.74% in the cumulative result in the year (the biggest change in a month of July, since the start of the series in 2010) and 29.32% in the last 12 months (the biggest change for this activity in the entire series), which is different from what occurred in July 2017, when, for example, the cumulative index reached -0.16%.

Among the products that recorded price rises in the month, the highlights were “ammonia”, “ethelene copolymers/vinyl acetate (EVA)”, “phenol (hydroxy benzene) and their salts” and “propene (non-saturated propylene)”. The most influential products, with positive results, include "NPK fertilizers". "non-saturated ethylene (ethene)", "non-saturated polypropylene (propene)". 

Basic metals: there was a change of 1.86% in relation to June, 10 positive changes in the last 11 months (in January 2018 the change was -0.06%). The cumulative index in the year was 13.47%, and in the last 12 months, 21.63%, both recording the highest rates since the start of the series.  Considering the IPP basis for mining and manufacturing in December 2013, the cumulative change in the sector was 48.04%.

Among the four products with the biggest price changes, against June, ad cumulative results in the year and in the last 12 months, all the figures were positive, except those for “copper bars, profiles, rebars alloys”. Two of the four main products recoded some of the biggest changes: “carbon steel hot-rolled coil, uncoated” and “tin plates”.

Another highlight influencing the result of the month, with a positive figure, is the product “carbon steel cold-rolled coil, uncoated” and, with a negative figure, the product “carbon steel ingots, blocks, rods or plates”. The four main products in the month accounted for 1.19 percentage points of the change and the other 18 products for only 0.67 percentage points.

Considering the main cumulative contributions in the year and in 12 months are the same products, which are also the most relevant one in this activity: “unwrought non-alloy aluminum", “carbon steel cold-rolled coil, uncoated”, “carbon steel hot-rolled coil, uncoated” and “carbon steel ingots, blocks, rods or plates”.

Mining and quarrying industry: in July, the prices of mining and quarrying industry rose 2.37%, against the results of June. That increase accounted for a contribution of 0.10 percentage points on general industry.  The cumulative change in the year was 23.55%.  In relation to July 2017, the prices of mining and quarrying industry rose 65.79%.  In terms of influence, the sector accounted for 2.02 percentage points over the 15.89%, observed for the 12-month indicator of general industry.

Positive influences came from "iron ore", and also the activities of price changes for "crude petroleum oils" and "natural gas".

Motor vehicles: in July, the change in the sector was 0.94%, compared to June, most of them since January this year (when the result was 1.27%). As a result, the cumulative change in the year reached 3.15%. Just for the sake of comparison, the cumulative index was 2.90% in June 2017. In the last 12 months, the sector accumulated a change of 5.62%.

That monthly change was the 11th result in a row and the 23rd in the last 24 months (August 2017 recorded a negative change of prices, of about -0.08%). Among August 2016 and July 2018, there was a cumulative change of 11.90%.

The activity motor vehicles, besides representing the four biggest contribution to the overall index, with acontribution of 10.71% - after Food products (19.71%), oil refining and ethanol products (12.66%) and Other chemicals (11.07%) – accounted for the main contribution to the monthly result change (0.10 p.p.).

The influence of these four influential products amounted to 0.60 percentage points. That is, the other 21 products of this activity accounted for 0.34 percentage points in the result of 0.94%.

Food products: in July, the prices of the sector recorded decrease (-0.29%), the first negative result since January 2018. In the year, the sector presents a cumulative change of 8.61%, a different scenario from that of July 2017 (-6.56%).  In comparison with July 2017, the prices rose 7.77%.

The sector was the third influence on the cumulative influence on the cumulative index in the year, 1.64 percentage points, in 9.84% - after Other chemicals, 2,00 percentage points, and Oil refining and ethanol products, 1.85 percentage points. Food products is also among the four major contributions, with 19.71% in July, in the calculation of mining and quarrying and manufacturing industry.

Among the highlights, there is no coincidence among those which stand out in terms of change (“condensed milk”, “powdered or granule milk", “meat and poultry giblets, fresh or cooled” and “fish preparations and preserved fish”) - all of them with positive price changes, except for “meat and poultry giblets, fresh or cooled” - and influence (“residue of soybean oil extraction”, “wheat flour”, “refined sugar” and “milled rice, parboiled or not”. In terms of influence, the four products ad an influence of -0.59 percentage points (over an index of -0.29%), with two positive contributions (flour and rice) and two negative ones (soybean and sugar residue).  The other 39 products were responsible for positive net figures (0.30 percentage points).

Oil refining and ethanol products: change of 0.24%, the fifth positive result in a row.  The cumulative change in 2018 (16.17%) was well above the cumulative result in 2017 until July (-3.17%).  In terms of the change in the last 12 months, the result of 42.41% was the highest rate in the series, when the average of this indicator was 6.65% in all the survey.

The four main products accounted for -0.32 percentage points of the 0.24%. That was due to the decrease in "ethyl alcohol (anhydrous or hydrated)" and "naphtha".  The positive change came from the two most representative products in the activity ("diesel and other fuel oils" and "motor gasoline") and the net balance of the other six products.