In November 2019, industry prices increased by 0.91% in comparison with those in October (-0.60%). The cumulative index in the year reached 4.55% and, in 12 months, 2.92%. In November, 15 of the 24 activities surveyed recorded a rise of prices. See the support material for the Producer Price Index (IPP) for additional information.

The four biggest changes in November were observed in the following activities of industry: mining and quarrying (4.86%), food products (3.48%), toiletries , soaps and cleaning products (-1.88%) and other transportation equipment (1.77%).  In terms of influence, the highlights were food products (0.79 percentage points), mining and quarrying (p.p.), basic metals (-0.08 p.p.) and other chemicals (-0.07 p.p.).

           Producer Price Indexes, by Mining and Manufacturing Industries        (General Industry) and Sections

In November, the cumulative index in the year (November against December 2018) hit 4.55%, versus 3.61% in October 2019. Among the activities recording the biggest percentage changes in this indicator, the highlights were: mining and quarrying industry (16.53%), oil refining and ethanol products (15.82%), pulp and paper (-11.38%) and pharmaceuticals (10.57%). The most influential sectors were: food products (1.72 percentage points) oil refining and ethanol products (1.47 p.p.), mining and quarrying industry (0.69 p.p.). and other chemicals (-0.42 p.p.).

In terms of the cumulative index in 12 months (November 2019 versus November 2018), the price change was 2.92%, against 0.33% in October 2019. The four main price changes took place in pulp and paper (-11.47%), other transportation equipment (10.15%), pharmaceuticals (10.10%) and food products (9.85%).

The price change, 0.91%, in the November/October comparison led to the following results in the major economic categories: 0.38% in terms of capital goods; 0.34% in intermediate goods; and 1.82% in consumer goods (being 0.45% the change observed in durable consumer goods and 2.11% in semi and non-durable consumer goods). The influence was 0.03 p.p. for capital goods, 0.18 p.p. for intermediate goods and 0.70 p.p. for consumer goods (0.67 p.p. for semi and non-durable consumer goods and 0.03 p.p. for durable consumer goods).                

    Producer Price Indexes, by Mining and Quarrying and Manufacturing   Industries (General Industry) and Major Economic Categories 

The cumulative changes of the major economic categories in the year were 5.91% in capital goods (with influence of 0.44 p.p.), 2.72% in intermediate goods (1.49 p.p.) and 6.91% in consumer goods (2.62 p.p.). In the last case, the results were influenced  by durable consumer goods (0.31 p.p.) and  by semi-durable and non-durable consumer goods (2.32 p.p.). In relation to the last 12 months, the changes were observed in capital goods (7.27%), intermediate goods (-0.16%) and consumer goods (6.92%). See the main highlights below:

Mining and quarrying industry: in November, the sector prices increased 4.86% in comparison with October, the biggest change among all sectors that were analyzed in this survey. The cumulative index in the year was 16.53%, which was also the biggest change reported among all activities of general industry. In relation to the last 12 months, the sector also had a cumulative  positive change of 7.06%. In terms of influence, mining and quarrying industries were the second biggest in the monthly change (0.22 p.p. out of 0.91%) and the third biggest in the cumulative index in the year (0.69 p.p.  out of 4.55%).

Among of the five products analyzed, three had positive results in November: “copper ores and their concentrates, crude or processed”, “iron ores and their concentrates, crude or processed, except if pelleted or sintered” and “crude petroleum oil”, the last one due to the changes in  oil prices in the international market. Only the prices of “natural gas, liquefied or in gaseous state” retreated in this period.

Food products: in November, the activity price changed, on average, 3.48%, the biggest result since September of 2015 (5.47%). With this result, the cumulative index in the year went to 7.67%, higher than in November 2018 (6.10%). It was the activity with the biggest contribution among all the activities of the industry (24.26%), and the first in influence both in the monthly comparison, 0.79 p.p. in 0.91%, and in the cumulative index in the year, 1.72 p.p. in 4.55%.

Among the products, the highlights were beef, pork and poultry, due to  incentive in exports of products throughout 2019, mainly due to problems related to internal supply in China and to the depreciation of Real. Currency exchange effects also had an impact on other export products, such as “residues of soybean extraction” and “VHP sugar”, highlights in terms of influence.

Oil refining and ethanol products: after two months with positive results, the average change of prices was -0.47% in the comparison between November and last month. As a result, the cumulative index in the year was 15.82%. In the last 12 months, the recent prices were 4.99% higher than the previous year. For the sake of comparison, in November of 2018, the prices were 18.67% higher than in November of 2017. The highlight to the sector was due to the fact that it was the second biggest change in the cumulative index and the second biggest influence on it (1.47 p.p. in 4.55%).

Among the four products that had most influence on the result, only the change of “diesel fuel” (with the biggest influence on the sector calculation, 40.74%) was negative. The list included: “ethyl alcohol (anhydrous or hydrated)”, “motor gasoline, except for aviation” and “liquefied petroleum gas”.

Other chemicals: in November, the prices of the sector changed, on average, -0.81%, the fifth negative change reported throughout the year. In the cumulative index, the change was -4.88% and, in the comparison with the last 12 months, -8.04%. The main responsible for the month’s result was the product called “inorganic chemicals products”, which reached -2.48%.

The four products with most  influence on the activity amounted together to -0.56 p.p. out of  -0.81% of the result in the November/October comparison. They were: “mineral or chemical manure or fertilizers with phosphorus”, “NPK manure or fertilizers”, “unsaturated propylene” all with negative results and “low density polyethylene (LDPE)” with positive result. The first two products are part of the “inorganic chemicals products” and justify the highlight of this group, which showed a negative change of 11.40% in the cumulative index of the year while the activity itself had  -4.88% cumulative in the year .

Basic metals: the average prices of the sector changed -1.41% in the comparison of November against October. It was the fifth negative result in 2019. As a result, the cumulative index in the year was -1.13% and -2.98% in 12 months. In November of 2018, the cumulative index in the year was 15.68% and the cumulative figure in 12 months,  16.54%

The result of November was especially due to the products whose prices depend on the values from the international market (mainly the ones derived from aluminum), on the exchange rate and on the products from the group of non-ferrous materials and steel industry.