In May 2021, industry prices rose by 1.00% compared to April. The cumulative index in the year reached 17.58% and the cumulative index in 12 months, 35.86%. In May, 16 of the 24 activities had higher prices, against 18 in the previous month.

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

In May 2021, industrial prices rose by 1.00% compared to April, a number lower than that of the comparison between April and March (2.19%). The four biggest changes were in the activities of basic metals (3.54%), metal products (3.12%), pharmaceuticals (2.41%) and other transportation equipment, which changed negatively (-2.63%).

The main influences were: food (0.35 pp), basic metals (0.25 pp), petroleum refining and ethanol products (0.18 pp) and metal products (0.09 pp).

The cumulative index in the year reached 17.58%, against 16.42% in April/2021. Among the activities with the greatest changes are: mining and quarrying industries (47.88%), petroleum refining and ethanol products (39.42%), basic metals (31.85%) and other chemical products (30.09%).

The most influential sectors were: petroleum refining and ethanol products (3.32 pp), mining and quarrying industries (2.63 pp), other chemical products (2.41 pp) and food (2.30 pp).

The cumulative index in 12 months was 35.86% against 36.09% in the previous month. The four biggest changes were in: petroleum refining and ethanol products (106.57%), mining adn quarrying industries (105.71%), basic metals (49.89%) and other chemical products (47.97%).

The most influential sectors were: food (7.57 pp), petroleum refining and ethanol products (7.00 pp), mining and quarrying industries (4.83 pp) and other chemical products (3.90 pp).

The 1.00% change in prices compared to April had the following repercussions among the major economic categories: -0.36% in capital goods; 0.88% in intermediate goods; and 1.48% in consumer goods, with 1.13% being the change observed in durable consumer goods and 1.54% in semi-durable and non-durable consumer goods.

The influence of economic categories on the IPP was: -0.02 pp of capital goods, 0.51 pp of intermediate goods and 0.51 pp of consumer goods. In the case of consumer goods, 0.06 pp was due to price changes observed in durable consumer goods and 0.44 pp, in semi-durable and non-durable consumer goods.

In the cumulative result for the year (17.58%), there was a change of 8.19% in capital goods (with an influence of 0.60 pp), 24.03% in intermediate goods (13.38 pp) and 9.72% of consumer goods (3.60 pp). The latter was influenced by 0.42 pp by durable consumer goods and 3.17 pp by semi-durable and non-durable consumer goods.

In the comparison May 2021/May 2020, industry prices rose 35.86%, with the following changes: capital goods, 12.86% (1.04 pp); intermediate goods, 46.63% (25.39 pp); and consumer goods, 25.18% (9.44 pp), with the influence of durable consumer goods being 0.95 pp and that of semi-durable and non-durable consumer goods 8.49 pp.

Mining and quarrying: for the second consecutive month, price changes in the comparison between the month and the previous month were negative: -0.43% in May. With that, the cumulative index in the year decreased from 48.52% to 47.88%. The comparison with the same month in 2020 shows that prices in May 2021 were 105.71% higher than those of the previous year. According to the index number, mining and quarrying industries showed the greatest change in prices accumulated between December 2018 (base of the current series) and May 2021, 144.83%, when considering all activities included in the survey.

The highlight given to the sector is due to the fact that it presented the highest cumulative change in the year and the second in M/M-12. In addition, it was the second biggest influence in the cumulative index in the year (2.63 pp, in 17.58%) and the third biggest in the cumulative index in 12 months (4.83 pp, in 35.86%).

Food: compared to April, May prices are 1.48% higher, thus maintaining, throughout 2021, positive rates in every month. In the cumulative index, the change reached 8.96%, which is close to that of May 2020, 8.84%, but both are at a level higher than the rest of the series for the same month (the average of the months of May between 2010 and 2019 was 0.63%).

Finally, prices in May 2021 were 30.54% higher than in May 2020. In this comparison, changes are above 30% since September 2020, with an average of 32.84%. The highlight given to the sector is due to the fact that, in addition to being the one that contributed the most in the calculation of the month (with 23.81%), it was the main influence in the monthly comparison (0.35 pp, in 1.00%) and in the annual comparison (7.57 pp, in 35.86%), in addition to being the fourth in the year to date (2.30 pp, in 17.58%).

Petroleum refining and ethanol products: prices in the sector, after falling from March to April (-0.55%), returned to a positive change from April to May, although at an intensity (1.80%) lower than that observed in the first quarter of the year, an average of 11.36%. The cumulative change up to May is the highest in the series, 39.42%, as well as the cumulative index in 12 months (106.57%).

The highlight given to the sector is due to the fact that, in addition to being the second in terms of contribution to the calculation of the general index of the month (10.00%), it presented the second largest price change in the year and the first in the cumulative index in 12 months. In addition, in terms of influence, it was the third in the monthly comparison (0.18 pp, in 1.00%), the first in the cumulative index in the year (3.32 pp, in 17.58%) and the second in the M /M-12 (7.00 pp, at 35.86%).

Other chemical products: the chemical industry, in the month of May, presented a negative average change in prices, compared to April, of -0.54%, interrupting a series of 10 consecutive increases in activity. Thus, the sector accumulated a positive change of 30.09% in the year and 47.97% in the last 12 months.

The results observed are mainly related to international prices and the price change of several raw materials, either imported or not, such as naphtha. The appreciation of the real against the dollar in May, which was 4.9%, cannot be left aside either.

The sector stood out, in comparison with the 24 activities in the survey, for having the fourth largest price change in the cumulative result for the year and in 12 months. In relation to the influence, it was the third largest in the year and the fourth largest in the cumulative index in 12 months, with the sector appearing as the third largest contribution to the result among the 24 activities, with 8.86%.

Basic Metals: from April to May, there was a change of 3.54%, the 11th consecutive increase in activity. As a result, the basic metals sector accumulated an increase of 31.85% in the year and 49.89% in the last 12 months. The monthly change was the lowest in the year.

So, the cumulative changes in the year and in 12 months were the highest in the entire survey, which started in January 2010. Between December 2018 (base of the current sample) and May 2021, prices in the sector had a cumulative change of 74.18%, second only to the rise of mining and quarrying industries, 144.83%, an activity in which iron ore, the main raw material for steel, is found.

The results of recent months are linked to the steel groups (related to steel products) and non-ferrous materials (copper, gold and aluminum), which have different price behaviors. The first is affected by iron ore prices and the change of the dollar against the real, in addition to restocking in the consumer chain. In the second group – non-ferrous materials – whose results are linked to international exchange quotations.

Metal products: in the transition from April to May 2021, the metal products manufacturing sector presented an average price increase of 3.12%, being the second largest change observed in the month among all sectors of mining and quarrying and manufacturing industries analyzed in the survey, in addition to having the fourth largest influence on the M/M-1 indicator, with 0. 09 pp in 1.00% of the General Industry.

As it has been seen since the beginning of the year, the increase in May is largely justified by the higher prices of raw materials used in the sector, in particular steel, a product that is scarce in the domestic market (the group of steel, for example, presented an increase of 5.81% in May and accumulated 75.26% in the last 12 months, and the basic metals sector had the biggest monthly change observed in industries, with 3.54%).

As a result, the sector accumulates an increase of 20.85% in 2021, the highest result in the time series for the first five months of the year. In the last 12 months, there was a new record: 33.04%.