Industrial prices increased 1.31% between May and June, above the rise registered between April and May (0.99%). The cumulative index in the year hit 19.11%, the highest one for June in the time series started in 2014. The cumulative index in 12 months was also a record, hitting 36.81%. The data are from the Producer Price Index - IPP, released today (28) by the IBGE.
The June´s rate is the 23rd consecutive positive rate in the monthly comparison. The survey measures the change in the prices of products at the "factory gate", without tax or freight, of 24 activities of the mining and manufacturing industries. Of them, 18 recorded positive changes in June. The biggest influence on the index came from mining and quarrying industries, which represented 0.60 percentage points, followed by other chemicals (0.19 p.p.), fabricated metal products (0.08 p.p.) and electrical machinery and apparatus (0.07 p.p.).
“Most of the change of 1.31% is explained by what occurred to the prices of mining and quarrying industries,” states Alexandre Brandão, manager of Analysis and Methodology. “After two consecutive months of negative changes in the month against immediately previous month comparison, the prices of the sector rose, on average, 8.71%, due to the change in the prices in dollar in the foreign market, despite the valuation of the real in the period,” adds him.
Another relevant rise was in fabricated metal products (2.80%), the second highest change recorded this month among all the sectors of the mining and manufacturing industries analyzed in the survey, besides posting the third biggest influence on the industry against May (0.08 p.p.). As it is happening since the beginning of the year, the increase in June is caused, to a great extent, by the higher prices of the raw materials used in the sector, especially steel.
Among the four activities that mostly increased their prices this month, besides mining and quarrying industries (8.71%) and fabricated metal products (2.80%), are the industries of electrical machinery and apparatus (2.60%) and non-metallic mineral products (2.50%).
Concerning the major economic categories, the IPP registered a rise of 0.71% in capital goods; 1.56% in intermediate goods; and 1.01% in consumer goods, of which 2.03% was the change seen in durable consumer goods and 0.81% in semi and non-durable consumer goods.
More about the survey
The IPP aims at measuring the average change of sale prices received by the domestic producers of goods and services, as well as its evolution over time, signaling the short-term inflationary trends in Brazil. It is a key indicator for the macroeconomic follow up and, consequently, a valuable analytical instrument to decision takers, either public or private.
The survey investigates, in slightly more than 2,100 enterprises, the prices received by producers, free from tax, tariffs and freight, defined according the most usual commercial practices. Nearly 6 thousand prices are collected monthly. The complete tables with the results are available at Sidra.