The industrial prices rose 1.83% in May 2022 over April. The cumulative index in the year reached 9.06% and the cumulative index in 12 months, 19.15%.  In May, 21 out of 24 activities surveyed rose their prices.

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).

The industrial prices rose 1.83% in May 2022 over April. The four sectors with the highest changes were: mining and quarrying industries (12.50%); pulp and paper (4.96%); tobacco (4.55%); and other transportation equipment (3.96%). The major influences occurred in: Mining and quarrying industries (0.66 percentage points), petroleum refining and biofuels (0.36 p.p.), pulp and paper (0.14 p.p.) and basic metals (0.14 p.p.).

The cumulative index in the year reached 9.06% against 7.09% recorded in April 2022.  The highest changes were in mining and quarrying industries (30.71%), petroleum refining and biofuels (26.37%), wearing apparel (10.17%) and pulp and paper (9.58%). On the other hand, the most influential sectors were: petroleum refining and biofuels (2.94 p.p.), mining and quarrying industries (1.50 p.p.), food products (1.39 p.p.) and other chemicals (0.80 p.p.).

The cumulative index in 12 months was 19.15% against 18.16% in April 2022. The four greatest changes were recorded by: petroleum refining and biofuels (53.79%); other chemicals (35.88%); manufacture of machinery and equipment (23.38%); and fabricated metal products (21.92%). The sectors that exerted the biggest influences were: petroleum refining and biofuels (5.38 p.p.), food products (3.70 p.p.), other chemicals (3.18 p.p.) and motor vehicles (1.00 p.p.).

The change of 1.83% in relation to April had an impact on the major economic categories as follows: capital goods, 2.04%; intermediate goods, 2.43%; and consumer goods, 0.77%, with 0.62% observed in durable consumer goods and 0.80% in semi and non-durable consumer goods.

The major influence among the major economic categories was exerted by intermediate goods, whose weight in the overall index was 59.25%, and it accounted for 1.43 p.p. of the 1.83% change. Consumer goods, with an influence of 0.27 p.p. and capital goods, with 0.14 p.p., completed the list. In the case of consumer goods, the influence was split into 0.03 p.p., due to the change in the prices of durable consumer goods, and 0.23 p.p., associated with the change in semi-and non-durable consumer goods.

As for the cumulative change in the year (9.06%), figures were 5.70%, for capital goods; 10.16%, intermediate goods; and 7.84%, consumer goods - in which durable consumer goods accumulated a change of 4.72% and semi-and non-durable consumer goods, 8.44%.

In terms of influence on the cumulative result up to May, capital goods accounted for 0.39 p.p. of the rate of 9.06% registered by general industry. Intermediate goods accounted for 5.96 p.p., and consumer goods contributed with 2.70 p.p. to the aggregated result of industry, an influence shared by durable consumer goods (0.26 p.p.) and semi-durable and non-durable consumer goods (2.44 p.p.).

Considering the cumulative index in 12 months, the change of prices of capital goods was 17.97% in May 2022. The prices of intermediate goods, in turn, changed by 20.10% the change in consumer goods was 17.78%, with durable consumer goods changing 13.62% and those of semi and non-durable consumer goods, 18.58%.

In relation to the influences, intermediate goods accounted for 11.81% of the rate of 19.15% in the cumulative change in 12 months in industry. There was, also, an influence of 6.13 p.p. from consumer goods and of 1.21 p.p. from capital goods.

Mining and quarrying industries - Having registered a negative price change in April, this sector returned to the positive side, with prices changing 12.50%. As a result, the cumulative index in the year changed from 16.19% in April to 30.71% in May, i.e., close to the rate of 31.35% of March. After recording three consecutive months of negative changes, the cumulative indicator in 12 months was 0.62% in May.

This sector stood out due to the fact that it registered the most intense change both in the comparison month against previous month and in the cumulative index in the year. In terms of influence, it was the first one in the monthly indicator (0.66 p.p.) and the second one in the cumulative index in the year (1.50 p.p.).

Food products - It was the fourth consecutive positive change, though the lowest of them. Having changed 0.67% in February, the prices changed 0.32% in May, 2.76% in March and 2.21% in April. In the cumulative indicator in the year, the change hit 5.85% in May, 2.80 p.p. below that of May 2021. The highlight in the sector was due to the fact it accounted for the third greatest influence on the cumulative indicator in the year (1.39 p.p. out of 9.06%) and the second one on the cumulative indicator in 12 months (3.70 p.p. out of 19.15%). It is worth mentioning that food products was currently the sector with the highest weight in the calculation of the general indicator (23.04%).

Four out of six groups in the food sector recorded a negative price change between April and May: “slaughter and manufacture of meat products” (-0.03%), “manufacture of vegetal and animal oils and fats” (-1.63%), “milling, manufacture of starchy products and animal food” (-0.43%) and “coffee roasting and grinding” (-0.24%). The first two groups have a high weight in the sector (as previously seen, the first and third products with the highest weights come right from these groups, like the second one, “frozen poultry and giblets”, which did not stand out in the monthly perspective). Despite the pressure, the May´s result was positive (0.32%), due to the increase reported in “dairy products” (2.74%) and “manufacture and refining of sugar” (1.50%).

Pulp and paper - This sector registered the second highest change (4.96%) and the third greatest influence (0.14 p.p.) on the monthly indicator of the general industry. This activity also stood out as the fourth highest cumulative index in the year (9.58%) in the general industry. The manufacture of pulp and paper changed 15.86% in relation to the last 12 months.

Petroleum refining - As it had happened along 2022, the prices in this sector changed positively between April and May (2.80%). As a result, the cumulative figure in in the year reached 26.37%. In turn, the prices practiced in May were 53.79% higher than those in the same month of 2021. It is worth mentioning that the annual rate has remained with two digits since February 2021 (18.25%), being 63.47% the average figure of the 16 observations between that month and May 2022.

This sector stood out because it registered the second highest change in the cumulative index in the year and the first one in the annual indicator. In addition, it exerted the second greatest influence on the May against April comparison (0.36 p.p. in 1.83%) and the first greatest influence both on the cumulative index in the year (2.94 p.p. in 9.06%) and on the cumulative indicator in 12 months (5.38 p.p. in 19.15%).

Other chemicals - The chemical industry changed -1.31% after two positive price changes, which accumulated 10.38%. This sector stood out with the second major cumulative change of prices in 12 months, and the fourth greatest influence on the cumulative index in the year and the third greatest influence on the cumulative indicator in 12 months.

In the comparison with the 24 activities of the survey, this sector stood out as it registered the second highest price change in the cumulative index in 12 months, as well as it recorded the fourth greatest influence on the cumulative index in the year and the third one on the cumulative indicator in 12 months.

As for the four most influential products to the result (-1.76 in -1.31%), there was a price reduction for “NPK-based manure or fertilizers” and “mineral of chemical phosphate manure or fertilizers”. “Linear polyethylene, with density below 0.94” and “polypropylene (PP)” were on the opposite side. The other 35 products surveyed in this activity also had, on the average, a positive result with 0.45 p.p of the final change of the activity.

Basic metals - Having changed 2.05% in May, this sector accumulated a change of 4.19% in the year and of 12.04% in 12 months.  The sector of basic metals stood out in the comparison with the 24 activities of the survey for having the fourth greatest influence on the prices this month.

The sector of basic metals stood out in the comparison with the 24 activities of the survey for having the fourth greatest influence on the prices this month.

The four products that mostly influenced the month´s change accounted for 1.71 p.p. in 2.05%, leaving 0.34 p.p. to the other 20 products surveyed.

The four products that mostly influenced the results this month were: “galvanized coils or plates” and “carbon steel ingots, blocks, rods or plates”, with positive changes, as well as “aluminum plates and stripes, of a thickness exceeding 0.2 mm” and “aluminum oxide (calcined alumina)”, with negative price changes.

Vehicles - The change of 0.83% was the 23rd consecutive positive result in this indicator. As a result, this sector accumulated a change of 5.82% in the first five months of 2022. The cumulative change in the last 12 months was 14.67%, below the rate of 14.95% reported in April. Having registered the fourth greatest influence on the cumulative result in 12 months (1.00 p.p. in 19.15% of the overall industry), the activity of motor vehicles stood out among all the sectors surveyed.

The economic group surveyed in “manufacture of cars, pick ups and SUVs” changed 0.61% in May compared with April. Like the sector, this was the 23rd consecutive positive figure in this indicator. Also, the group has recorded a cumulative change of 5.05% in the first five months of 2022, whereas it recorded 12.64% in the last 12 months. It is worth highlighting that all these figures were below the sector average.