In June 2022, industrial prices rose 1.00% from May. The cumulative index in the year reached 10.12% and the cumulative index in 12 months, 18.78%. In June, prices rises were observed 15 of 24 activities surveyed.

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 June 2022, industrial prices rose 1.00% from May. The four biggest changes were recorded by: petroleum refining and biofuels (4.05%); printing (3.97%) mining and quarrying industry (-2.89%); and food producrs (1.99%). Petroleum refining and biofuels (0.52 percentage points); food products (0.46 p.p.); mining and quarrying industry (- 0.17 p.p.; and basic metals (-0.10 p.p.) were the main influences.

The cumulative index in the year reached 10.12% against 9.03% in May 2022. That was the second highest result for a month of June since the start of the time series in 2014. The highest changes were those of petroleum refining and biofuels (31.48%), wearing mining and quarrying industry (26.93%), printing (12.86%) and pulp and paper (11.50%). On the other hand, the most influential sectors were: petroleum refining and biofuels (3.50 p.p.), food products (1.86 p.p.), mining and quarrying industries (1.31 p.p.), and other chemicals (0.85 p.p.).

The cumulative index in 12 months reached 18.78% against 19.12% in May 2022. The four main changes were recorded by: petroleum refining and biofuels (59.69%); other chemicals (33.57%); manufacture of machinery and equipment (21.73%); and non-metallic minerals (20.86%). The most influential sectors were: petroleum refining and biofuels (5.90 p.p.), food products (4.20 p.p.), other chemicals (3.00 p.p.) and motor vehicles (0.99 p.p.).

Price changes recorded the following results from May to June: 0.98% in capital goods (BK), 1.04% in intermediate goods (BI), and 0.92% in consumer goods (BC), being the change reported in durable consumer godds (BCD) of 0.48% and that in semi and non-durable consumer goods (BCND) of 1.01%.

The main influence among the major economic categories was exerted by intermediate goods, which represented 59.21% of the overall index and accounted for 0.62 p.p. of the change of 1.00% in mining and quarrying and manufacturing industries. Consumer goods (influence of 0.32 p.p.) and capital goods (0.07 p.p.) complete the list. In the case of consumer goods, the influence was split into 0.03 p.p., for durable consumer goods and 0.29 p.p., for semi and non-durable consumer goods.

As for the cumulative index in the year (10.12%), changes were 6.72%, for capital goods; 11.16%, for intermediate goods; and 9.01%, for consumer goods - with durable consumer goods having a cumulative change of 5.23% and semi-and non-durable consumer goods, with 9.74%.

In terms of influence on the cumulative result up to June, capital goods accounted for 0.46 p.p. of the rate of 10.12% registered by general industry. Intermediate goods accounted for 6.55 p.p., and consumer goods for 3.11 p.p. in the aggregated result of industry, an influence shared by prices of durable consumer goods (0.29 p.p.) and semi-durable and non-durable consumer goods (2.82 p.p.).

Considering the cumulative index in 12 months, the change of prices of capital goods was 18.15% in June 2022. The prices of intermediate goods, in turn, changed by 19.41% in the year and the change in consumer goods was 17.82%, with durable consumer goods changing by 12.02% and semi and non-durable consumer goods, by 18.96%.

Intermediate goods accounted for 11.43 p.p. of the 18.78% of cumulative change in 12 meses in industry, in this month of reference.The result of June 2022, was also formed by 6.13 p.p. from consumer goods and 1.21 p. p. from capital goods.

Consumer goods got 0.68 p.p from durable consumer goods and 5.45 p.p from semi and non-durable consumer goods, which accounts for 84.39% of this major economic category.

Mining and quarrying industry - the prices of the sectoe changed by -2.89%, the second decrease observed in the country (the other one was in April, -11.54%). As a result, the cumulative index in the year went from 30.71% in May, to 26.93% in June. In terms of cumulative index in 12 moonths, the result was negative once again (-10.13%), which had been observed between February (-5.73%) and April (-10.95%).

The sector recorded the third biggest change (the only negative change among the four selected ones) in M/M-1 and the second biggest cumulative change in the year (positive, in this case). The sector also accounted for the third main influence on M/M-1 (-0.17 p.p, out of 1.00%) and on the cumulative index in the year (1.31 p.p., out of 10.12%). The drop in the month resulted from iron ore, which followed the movement observed in the international market.

Food products - in June, for the fifth month in a row, the month-on-month comparison was positive, 1.99%. As a result, cumulative indicators in the year and cumulative in 12 months advanced in comparison with the results in the previous month. The cumulative index in the year went from 5.72%, in May, to 7.83% in June; the cumulative index in 12 months, with a change from 15.46% to 17.92% (the highest result since December 2021, 18.66%).

The sector accounted for the fourth biggest change (positive, in this case), from the perspective of M/M-1, besides being the second biggest of three indicators: 0.46 p.p., out of 1.00% (M/M-1); 1.86 p.p., out of 10.12% (cumulative in the year); and 4.20 p.p., out of 18.78% (M/M-12).

Dairy products were a highlight in terms of change. Considering the monthly indicator, the four highlights are dairy products. In terms of the cumulative index in 12 months, 2 of the 4 highlights are dairy products. In terms of influence, on the three indicators, and always with a positive influence comes “sterilized/UHT/long life milk.

The influence of the four products added up to 0.08 p.p.

In terms of group, only two, considering the monthly analysis, recorded changes above the average: “dairy products (14.91%) and "manufacturing and refining of sugar” (3.12%). The rise of prices of dairy products is in line with the usual in-between harvest period, as well as the price of sugar. Two groups, on the other hand, recorded a negative change of prices, from May to June. : “manufacture of oils and vegetal and animal fats” (-2.51%) e "grinding and toasting of coffee" (-0.26%).

The prices of dairy products also changed above the average both in terms of cumulative change in the year (46.04% versus 7.83% in the sector), as well as in the cumulative index in the year (40.97% versus 17.92%). Anyway, from the perspective of M/M-12, the change observed in the price of the group "toasting and grinding of coffee" was a highlight against the others, once it hit 64.12%.

Oil refining - against the previous month, prices of the sector changed by 4.05%. As a result, there were increases both in the cumulative index in the year (from 26.37%, in May, to 31.48%) and in the cumulative index in 12 months (from 53.79% to 59.69%)

The highlight of the sector refers to its leading role in terms of all the indicators calculated. It recorded the biggest change in the three indicators, always with a change of prices. The sector also recorded the biggest influence: 0.52 p.p., out of 1.00% (M/M-1); 3.50 p.p., out of 10.12% (cumulative in the year); and 5.90 p.p., out of 18.78% (M/M-12).

A single product, among the highlights, recorded a negative change of prices, “ethyl alcohol (anidrous or hydrated)” - following the end of sugarcane harvesting.  

Other chemicals – chemical industry, in June, recorded a change of 0.54%, reversing the change observed in May (-1.42%). An analysis by economic group shows that the month’s result was very euqally distributed among them, with “manufacture of inorganic chemicals” recording an average change of 0.68% in the month; “manufacture of agricultural defensives and disinfectants,” o.90%, and “manufacture of resins and elastomers,” 0.51%.

This way, the cumulative index in the year reached 8.28%, with a behavior apart from that in the monthly analysis: the groups “manufacture of inorganic chemicals” and “manufacture of agricultural defensives and household disinfectants” reached, respectively, 9.26% and 35.31%, whereas “manufacture of resins and elastomers”, which recorded a positive change in the month, reached -6.04% cumulative in the year.

With regard to the cumulative index in 12 months, the highlight was inorganic chemicals, influenced by the increase in prices of manure/fertilizers. The change of prices, in this group, amounted to 69.28%, followed by a change of 47.38% in “manufacture of fertilizers and household disinfectants”, both representing positive contributions to the change of 33.57% in 12 months. “Manufacture of resins and elastomers” changed by -5.57% in 12 months.

With regard to the four most influential products on the result (0.46 p.p., out of 0.54%), there was a rise of prices of “NPK based manure or fertilizers” and “herbicides for use in agriculture”. Opposite to those are “mineral or chemical, phosphated fertilizers” and “propene (non-saturated propilene). The other 35 products surveyed in this activity also had, on the average, a positive result with 0.08 p.p of the final change of the activity.

Among 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”, “herbicides for agricultural use” and “mineral or chemical, phosphated fertilizers”. In terms of cumulative index in the year, another highlight is “vinyl polichloride (PVC)”, with a negative change and, cumulative in 12 months, “superphosphates”, with a positive result.

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, besides accounting for the fourth greatest influence on the cumulative index in the year and the third one on the cumulative indicator in 12 months.

Basic metals – against May, the price change was of -1.50%, after three positive changes in a row. This way the sector accummulated a positive change of 2.62% in the year and 10.084% in 12 months. Another highlight is that, between December 2018 (base for the current sample) and June 2022, prices of the sector had a cumulative change of 92.21%, a figure above that of the general IPP indicator for the same period (77.62%).

The results of the sector are related to the steel group (steel products) and to that of non-ferrous material (copper, gold and aluminium): steel is affected by the recomposition of stocks in the consumption chain, by prices of iron ore, recording a decrease in the month and cumulative in 12 months. Also, in JUne, the dollar rose 1.9% against the real. The results of non-ferrous material are related to the prices of international stock markets.

The steel product, which is part of basic metals, fell for the fourth time in the year and the seventh in the last 12 months (-0.55%). As a result, in June, the cumulative index reached 8.01% in the year and 8.18% in the last 12 months.

The four products that mostly influenced the month’s change accounted for -1.04% p.p. out of -1.50%, leaving -0.46 p.p. to the other 20 products surveyed.

The four most influential products affecting the month’s results were: “aluminium oxide”, “aluminium sheets and strips, more than 0,2mm thick”, “unwrought non-alloy aluminum” and “carbon steel ingots, blocks, rods or plates”, with the last one recording a positive price change in the month.

In relation to the contribution to the cumulative index in the year and in 12 months, three products are in the two indicators, two of them with positive results: “pig iron”and carbon steel ingots, blocks, rods and plates.” The produc “aluminium oxide” recorded a negative change in the year, but, in terms of cumulative results in 12 months, had a positive result. The comes “galvanized, zinc-coated, chromium plated coils or plates” with a positive change cumulative in the year; and “ aluminium sheets and strips, more than 0.2 mm thick”, with positive change 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.

Motor vehicles – this sector changed 0.93% in June when compared with the immediately previous month. That was the 24th consecutive positive result in the indicator, with a cumulative increase of 30.79% in these two years. It is worth mentioning that, throughout this period, the sector has observed an increase of costs in its production chain, mainly of electronic inputs, due to the semiconductor crisis. In the first semester of 2022, the sector had a cumulative change of 6.82%. And the cumulative change in the last 12 months hit 14.62%, a result close to that observed in May 14.69%.

Having registered the fourth greatest influence on the cumulative result in 12 months (0.99 p.p. in 18.78% 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 0.52% in June compared with May. Like the sector, this was the 24th consecutive positive figure in this indicator, with a cumulative index of 25.81% in this period. Also, the group has recorded a cumulative change of 5.59% in the first six months of 2022, whereas it recorded 12.05% in the last 12 months. It is worth highlighting that all these figures were below the sector average.

The four most influental products on M/M-1 had a positive impct on the index: “gear and transmission systems for motor vehicles", “passenger car, using gasoline or biofuel”, “tractor truck, for trailers and semi-trailers" and “pieces for car steering/suspension for motor vehicles.” The influence of these four products that mostly impacted the monthly change in relation to the immediately previous month was of 0.83 p.p., i.e., the other 19 products of this activity contributed with 0.10 p.p.

In relation to long-term indicators, cumulative in the year and M/M-12, the four most influential products on the index are common among the indicators and had a positive impact: “passenger car, gasoline or biofuel”, “tractor truck for trailers and semi-trailers”, “diesel truck with a capacity above 5t” and “gear and transmission system for motor vehicles.”