In January 2022, the industrial prices grew 1.18% over December, above that registered in the comparison between December 2021 and November 2021 (-0.08%).

In January, the prices of 18 out of 24 industrial activities investigated in the survey record positive price changes against the immediately previous month.

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

In January 2022, the prices of the mining and manufacturing industries (IPP), or, alternatively, general industry (IG), changed, on average, 1.18% when compared with those of December 2021, a figure higher than that reported in the comparison between December 2021 and November 2021 (-0.08%).

In January 2022, 18 out of 24 industrial activities investigated in the survey recorded positive price changes against the immediately previous month, following the signal of the change in the index of the overall industry. They had been 17 in December. The four activities with the highest changes in absolute terms in January over December were: mining and quarrying industries (9.54%), beverages (4.31%), wood (3.14%) and pulp and paper (2.85%).

Mining and quarrying industries was the industrial sector that mostly highlighted in the aggregate result, accounting for 0.46 percentage points (p.p.) of influence on the change of 1.18% in the overall industry. Still in this matter, other activities that also stood out were petroleum refining and biofuels (0.25 p.p. of influence), motor vehicles (0.15 p.p.) and basic metals (-0.11 p.p.).

The cumulative change over the last 12 months, a comparison between the prices in January 2022 and in January 2021, was 25.51% in this reference month. In the previous month (December 2021), that indicator had registered 28.45%.

The sectors with the four highest price changes in this comparison were: petroleum refining and biofuels (64.81%), other chemicals (56.65%), wood (38.97%) and fabricated metal products (33.01%).

The sectors that mostly influenced the aggregate result were: petroleum refining and biofuels (5.55 p.p.), other chemicals (4.60 p.p.), food products (4.20 p.p.) and basic metals (2.12 p.p.).

Among the major economic categories, the price changes in January 2022 over December 2021 were the following: 2.56% in capital goods (BK), 1.73% in intermediate goods (BI), and -0.04% in consumer goods (BC), being the change reported in durable consumer goods (BCD) of 1.20% and that in semi and non-durable consumer goods (BCND) of -0.27%.

The major influence among the major economic categories was exerted by intermediate goods, whose weight in the overall index of January was 58.98%, and it accounted for 1.02 p.p. of the 1.18% change. Capital goods (influence of 0.18 p.p.) and consumer goods (-0.01 p.p.) complete the list. In the case of consumer goods, the influenced reported in January was split into 0.07 p.p. (durable) and -0.08 p.p. (semi and non-durable).

The price change in capital goods was 19.73% in the cumulative indicator in the last 12 months among the major economic categories. The prices of intermediate goods, in turn, changed 30.93% in the one-year interval and the change in consumer goods was of 18.22%.

Concerning the influences on the result along the last 12 months among the major economic categories, intermediate goods, with a weight of 58.98% in the overall index, accounted for 17.49 p.p. in 25.51%. In the result of January 2022, consumer goods influenced 6.59 p.p. and capital goods, 1.44 p.p. The result of consumer goods, in particular, was influenced in 0.90 p.p. by durable consumer goods and in 5.69 by semi and non-durable consumer goods, the latter with a weight of 83.63% in the index of this major category.

The following sectors stood out in January:

Mining and quarrying industries: the prices in the mining and quarrying industries changed 9.54%, the first positive change since August 2021. In the annual comparison, the prices of January 2022 were 11.30% higher than those of January 2021. In this indicator, it is worth noticing that the prices in August 2021 were 82.03% higher than those in August 2020, a change that dropped down to 13.83% in December. The January´s result led the price change in this sector as the one that mostly influenced the month´s result (0.46 p.p. in 1.18%), as well as the highest change registered among the 24 industrial sectors covered in the survey. Both “crude petroleum oil” and “iron ores and their concentrates, except pelleted or sintered”, the two products with the highest weight in the sector, positively pressed the price change.

Food products: the prices in the sector changed -0.20%, the first negative figure since June 2021 (-0.14%). With this result, the annual comparison was 16.69%, a retreat in relation to the result that closed 2021 (18.66%).

This sector stood out due to the fact that it was the third biggest influence on the cumulative index in 12 months (4.20 p.p. in 25.51%), considering all the 24 activities of the mining and manufacturing industries. It should be highlighted that this sector was the highest weight in the index, which was 24.95% in relation to the manufacturing industry.

In the monthly change, no product stood out, either in terms of change or influence. The list of the four most influential products (accounting for -0.74 p.p. in -0.20%) was the following: “residue of soybean oil extraction”, “frozen poultry and giblets”, “fresh or cooled beef” and “VHP sugar”. It is worth mentioning that, of the four most influential products, only “residue of soybean oil extraction” recorded a positive price change between December and January. The influence of the other 39 products that comprise the sector basket was 0.54 p.p., which pointed out that the negative change has fallen on the first (“fresh or cooled beef”), second (“frozen poultry and giblets”) and fourth (“VHP sugar”) products with the highest weight (altogether, they hit 29.92% of weight in the calculation).

When analyzing the open groups in this sector, the negative price change was restricted to two out of six of them, just “slaughtering and manufacture of meat products” (-3.89%) and “manufacture and refining of sugar” (-2.31%).

Two out of four products that stood out in terms of influence this month also stood out in the index of the last 12 months: “fresh or cooled beef” and “VHP sugar”.

Petroleum refining and biofuels: having changed -1.54% in December 2021, the change in January 2022 returned to the positive side (2.26%). In the annual rate, the prices in January 2022 were 64.81% higher than those in the same month of 2021, a change below that registered by the end of the year (69.68%). Whatever, the annual change in this sector was the highest one among the 24 industrial activities surveyed.

However, this sector stood out not only due to the more intense annual change. It was the second biggest influence this month (0.25 p.p. in 1.18%) and the biggest influence on the index of the last 12 months (5.55 p.p. in 25.51%). It should be reminded that this sector was the second highest weight today (11.25%).

Other chemicals: the chemical industry recorded the second highest price change in the IPP in the analysis of cumulative prices in 12 months (56.65%). In the current month, its change, though positive, stayed at 0.12%.

These results were mainly linked with the international prices, including the price change of several raw material, either imported or not, like naphtha, for instance. The major responsible for the month´s result were the groups of “manufacture of inorganic chemicals” (-0.02%) and “manufacture of resins and elastomers” (-3.29%). These negative results partly offset the positive change in “manufacture of agrochemical products and disinfectants (for agriculture and other use” (8.32%).

Concerning the result in the last 12 months, the major highlight was the group of inorganic chemicals, more specifically manure/fertilizers, caused by the significant increase of inputs like urea, smaller production of fertilizers in the foreign market and valuation of the dollar against the real in the last six months of 2022. The price change was 112.97% in the year in this group, the second highest value for this index in the entire time series.

On the other hand, the group of “manufacture of resins and elastomers” changed 28.76% in 12 months, the lowest value for this index since September 2020, when it hit 27.81%. Lastly, the result was 28.80% in the group of “manufacture of agrochemical products and disinfectants (for agriculture and other use)”, the highest value in the entire time series.

Regarding the four products that mostly influenced the result (0.44 p.p. in 0.12%), “ herbicides for agricultural use” and “NPK-based manure and fertilizers” increased their prices, and “polypropylene (PP)” and “unsaturated propane (propylene” reduced. The other 35 products surveyed in this activity also had, on the average, a negative result with –0.32 p.p of the final change of the activity.

Concerning the products that mostly influenced the results in the cumulative index in 12 months, all of them registered positive changes: “NPK-based manure or fertilizers”, “mineral of chemical phosphate manure or fertilizers”, “ herbicides for agricultural use” and “superphosphates”.

As previously stated, this sector stood out in the comparison with the 24 activities of the survey as it recorded the second highest price change in the cumulative index in 12 months and also the second biggest influence on the same index, with 4.60 p.p. in 25.51% of the overall index.

Basic metals: the price change in this activity was -1.48%, the third consecutive negative change, after a series of 16 positive changes. With this result, the sector of basic metals accumulated a change of 31.62% in 12 months.  Another highlight is that between December 2018 (base for the current sample) and January 2022, the prices of the sector had a cumulative increase of 84.53%, only second to the cumulative increase of mining and quarrying industries, 106.44%, activity that includes iron ore, main raw material for steel.

“The results of the sector are linked with the behavior of the groups of steel products  and non-ferrous material (copper, gold and aluminum), whose prices behave differently. The former group is affected by the prices of iron ore, which dropped due to the change of the dollar against the real, as well as by the recomposition of stocks in the consumption chain. Concerning the second group – non-ferrous materials –, prices used to be linked with the quotes in the international stock markets.

Considering the economic groups in this activity, the steel industry recorded a negative change for the fourth time in a row, now of -1.98%, thus accumulating -8.53% in this period. Even so, the steel sector accumulated 37.06% in the year, above the average change in the activity in 12 months (31.62%).

The four products that mostly influenced the monthly change accounted for -0.92 p.p. of -1.48%, with -0.56 p.p. for the other 20 products surveyed.

Three out of four products that mostly influenced the monthly results recorded negative changes. They are based on iron ore, influenced, as previously mentioned, by the drop in the prices of this input in the market.

The products that stood out in terms of influence this month were: “aluminum oxide”, “carbon steel ingots, blocks, rods or plates” and “stainless steel coil or sheet, including strips”. In contrast, the prices of “aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm” exerted a positive influence.

The analysis of the cumulative index in 12 months showed three out of four of these products standing out, though all of them with positive price changes, except for “aluminum oxide”, which did not stand out in 12 months, replaced by “uncoated hot-rolled steel carbon coil”.

The basic metals sector stood out in the comparison with the 24 activities in the survey, both as the fourth biggest influence in prices this month (-0.11 p.p. in 1.18%) and in the cumulative index in 12 months (2.12 p.p. in 25.51%).

Motor vehicles: the change recorded by this sector was of 2.27%, the highest value for this activity in the entire time series, started in January 2010, and maintaining the upward trend noticed since July 2020. In the cumulative index over the last 12 months, this activity registered a change of 15.95%, also the highest result of this indicator in the entire time series.

After a year, the activity of motor vehicles once again stood out among all the sectors surveyed, as it reported the third biggest influence on the monthly indicator (0.15 p.p. in 1.18%).

The economic group analyzed, “manufacture of cars, pick ups and SUVs”, recorded results below the average of this sector. In January, it changed 1.78% compared with December. Like in the sector, it registered consecutive positive figures in this indicator since July 2020. And, in the last 12 months, this group accumulated a change of 13.68%, a result above that recorded in January 2021, whose cumulative change in 12 months had been 9.55%.

The analysis of the products of this sector showed that, among the four most influential produscts in the month, all of them impacted positively the index: “passenger automobiles, gasoline or bio fuel”, “diesel truck with load capacity above 5t”, “tractor trucks for trailers and semi-trailers” and “chassis with engine for buses or for trucks”. The influence of these four products that mostly impacted the monthly change in relation to the immediately previous month was of 1.81 p.p., i.e., the other 19 products of this activity contributed with 0.46 p.p.

Concerning the cumulative indicator in 12 months, three out of four most influential products were the same and positively impacted the index: “passenger automobiles, gasoline or biofuel”, “diesel truck with load capacity above 5t”, “tractor trucks for trailers and semi-trailers” and “parts/pieces, engine system of motor vehicles”.