Producer prices in Brazil retreated for the third consecutive month in October and the index accumulated in 12 months reached the lowest level in almost two and a half years, informed the Brazilian Institute of Geography and Statistics (IBGE) this Tuesday (29).
The Producer Price Index (IPP) retreated 0.85% in October, accumulating a 12-month high of 6.50%, the lowest result in this type of comparison since June 2020 (+6.38%).
Among the 24 activities analyzed, the IBGE pointed out that 12 had a decline and 12 were discharged. The main highlight was the chemical industry, with a drop of 4.58%, due to the decline in the prices of fertilizers and organic products.
“Fertilizers have a growing supply that has not been accompanied by demand, causing a drop in prices”, explained Murilo Lemos Alvim, an analyst at IPP.
According to him, the increase in the supply of fertilizers comes after a period of scarcity in the foreign market due to the war between Russia and Ukraine.
“Despite the recent shortage, Brazil made an effort and achieved a high import volume, and now has a comfortable stock,” said Alvim.
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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