In October 2020, industry prices rose 3.40% compared to September, the highest increase in the time series, which started in January 2014. The cumulative index in the year reached 17.29%, against 13.42% in September/2020 . The cumulative index in 12 months was 19.08%, compared to 15.86% in September/2020. In October, 23 of the 24 activities saw price increases, compared to 21 in September.

The Producer Price Index (IPP) for Mining and Quarrying and Manufacturing Industries measures  “factory gate prices”, excluding taxes and freight, and covers the major economic categories: capital goods, intermediate goods and consumer goods (durable, semi-durable and non-durable).

In October 2020, industry prices rose, on average, 3.40% compared to September 2020. This was the biggest increase in the time series of this indicator, which started in January 2014. The four biggest changes were in mining and quarrying industries (9.71%), metal products (4.93%), footwear and leather products (4.64%) and food (4.60%). The main influences were: food (1.17 pp), mining and quarrying industries (0.53 pp), other chemicals (0.36 pp) and metal products (0.31 pp).

The cumulative index in the year reached 17.29% compared to 13.42% in September/2020. Among the activities, the biggest changes were: mining and quarrying industries (50.31%), metal products (29.13%), wood (29.12%) and food (28.36%). The sectors of greatest influence were: food (6.67 p.p.), mining and quarrying industries (2.27 p.p.), other chemicals (1.71 p.p.) and metal products (1.69 p.p.).

In the cumulative index in 12 months, the price change was 19.08%, against 15.86% in September/2020. The four biggest price changes occurred in mining and quarrying industries (53.64%), food (35.89%), wood (28.88%) and metal products (26.59%). The sectors of greatest influence were: food (8.10 p.p.), mining and quarrying industries (2.40 p.p.), metal products (1.60 p.p.) and other chemical products (1.53 p.p.).

The price change of 3.40% in relation to September had repercussions in the following way among the major economic categories: 2.69% in capital goods; 5.01% in intermediate goods; and 1.22% in consumer goods, with 0.97% being the change observed in durable consumer goods and 1.27% in semi-durable and non-durable consumer goods.

The influence of economic categories on the IPP (3.40%) was: 0.20 pp of capital goods, 2.74 pp of intermediate goods and 0.46 pp of consumer goods. In the case of consumer goods, 0.06 pp was due to price changes observed in durable consumer goods and 0.40 pp in semi-durable and non-durable consumer goods.

In the cumulative index  result for the year, the price changes of the industry reached, until October, a change of 17.29%, being 17.44% the change of capital goods (with influence of 1.30 pp), 21.93% of goods intermediaries (11.72 pp) and 10.90% of consumer goods (4.26 pp). In the latter case, this result was influenced by 0.62 pp by durable consumer goods products and 3.64 pp by semi-durable and non-durable consumer goods.

In the October 2020/October 2019 comparison, the price change in the industry reached 19.08%, with the following changes: capital goods, 17.95% (1.36 pp); intermediate goods, 22.51% (12.16 pp); and consumer goods, 14.48% (5.57 pp), with the influence of durable consumer goods being 0.65 pp and that of semi-durable and non-durable consumer goods was 4.91 pp.

Here are the main highlights:

Mining and quarrying industries: in October, the average price change was 9.71%, the seventh consecutive positive result in the year. Thus, until October, prices in 2020 changed by 50.31% and, in comparison with the same month of 2019, the change was 53.64%.

These results are influenced by the exchange rate, a depreciation of the real against the dollar of 4.2% (October versus September), 36.9% (between December 2019 and October 2020) and 37.6% (cumulative index  in 12 months), but also reflect the movement in international prices of “crude petroleum oil” and “iron ores and concentrates”.

The highlight given to the sector is due to the fact that it was the main change (in module) in the three perspectives (monthly change, cumulative index  in the year and cumulative index  in twelve months) and the second major influence in these three cases (0.53 pp, in 3.40%, in the monthly change; 2.27 pp, in 17.29%, cumulative index  in the year; and 2.40 pp, in 19.08%, in the last 12 months).

Food: in October, sector prices, in comparison with the previous month, grew on average 4.60%, maintaining the consecutive positive changes observed since July. In the cumulative result for the year, the change was 28.36% and, in 12 months, 35.89%, both are the largest in their series. In the case of the cumulative index in the year, not only was there never an October of such high, but there was never any other month. It is worth noting that until December 2019, the highest annual rate had been that of December 2010, 21.24%, and that the cumulative  results in 12 months from July to October are all higher than that (July, 23.69 %; August, 27.60%; September, 32.51% and October, 35.89%).

The highlight given to the sector was due to the fact that, in terms of change and among all activities that comprise the mining and quarrying and manufacturing industries, it was the fourth largest in the monthly change and in the cumulative index  in the year and the second in the cumulative index  in 12 months. On the other hand, it was the main influence in the three perspectives of analysis: 1.17 pp, at 3.40% (monthly); 6.67 pp, in 17.29% (cumulative index  in the year); and 8.10 pp, in 19.08% (last 12 months).

In group terms, prices for the " manufacture of vegetable and animal oil and fat” and “sugar manufacturing and refining” had, considering the comparison October versus September, average changes greater than that of the sector, 13.48% and 4.98%, respectively.

Other chemical products: the chemical industry, in October, presented an average price change, in relation to September, of 4.52%, fourth consecutive increase and the second highest result of the year. Thus, the sector accrued an increase of .08% in 2020, higher by about 27 pp than the rate accumulated until October 2019 (-4.10%). In the entire IPP series, the value of 2020 is only lower than that of October 2018 (29.55%). The cumulative index in 12 months reached 18.96%, the highest value since December 2018 (19.25%).

In relation to the economic groups of the activity, the highlights were the changes that occurred in “manufacturing resins and elastomers”, with 10.87%, thus accumulating 46.43% of change in the year and 41.88% in the cumulative index in the last 12 months.

Another economic group that deserves to be highlighted in the month is the “manufacturing of inorganic chemical products”, with a 3.49% change. In the year, the group accrued  a change of 19.51%, while in the last 12 months, it accumulated a result of 14.14%. Finally, the group “manufacture of pesticides and household disinfectants”, with a 2.78% change in the month; in the year of 15.24% and 15.47% in 12 months.

As for the four products that most influenced the result in the month (2.48 pp in 4.52%), there was an increase in prices in all of them, namely: “polyvinyl chloride (PVC)”, “fertilizers or fertilizers based on NPK ”,” linear polyethylene, with density lower than 0.94) ”and“ high density polyethylene (HDPE) ”.

Metal products: compared to September, there was an increase of 4.93%, the second highest in the IPP series, second only to that of seven months ago, which was equal to 5.74%. With this result, the activity accumulated, in the year, a change of 29.13% and, in the last 12 months, 26.59%.

The two cumulative values ​​are the highest of this activity in the entire IPP series, which started in January 2010. An analysis of the index numbers indicates that, between December 2018 (base of the current series) and October 2020, the prices accumulated  a high of 26.95%.

Considering the economic groups of the activity, the steelmaker presented a 5.35% change, thus accumulating 27.06% change in the year and 23.04% in the cumulative index  in the last 12 months.
From the point of view of the four products that most influenced the result in the month (1.96 pp in 4.93%), there was a price increase in all of them, namely: “carbon steel hot coils, uncoated”, “Carbon steel ingots, blocks, billets or plates”, “aluminum oxide (calcined alumina)” and “gold for non-monetary uses”.