Producer prices in Brazil fell by 0.54% in November, the fourth consecutive negative rate, informed the Brazilian Institute of Geography and Statistics (IBGE) this Wednesday (4).
November deflation, however, was weaker than that seen in October, when industrial prices fell by 0.86%. With that, the index starts to accumulate in 12 months high of 4.39%.
The four major variations were registered in other chemical products (-4.41%); tobacco (2.38%); perfumery, soaps and cleaning products (2.04%); and printing (1.95%).
“The biggest influence on the drop in prices in the chemical industry, in October and November, is related to the reduction in fertilizer prices. Brazil imports a large part of what it consumes, so the prices of products produced here follow international prices, and these, after being high at the beginning of the European conflict, began to fall, with a certain normalization of trade flows”, explained the Manager of Analysis and Methodology at IBGE, Alexandre Brandão.
Also noteworthy was the 0.70% drop in food, according to Brandão, influenced by the entry into the harvest of some products and lower demand for others.
The IPP measures the variation in product prices at the “factory gate”, that is, excluding taxes and freight, for 24 extractive and transformation industries.
Source: CNN Brasil
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