The Producer Price Index (IPP) recorded the biggest decline in the historical series in August this year, with a drop of 3.11% compared to July.
The data were released by the Brazilian Institute of Geography and Statistics (IBGE) this Wednesday morning (28).
With the result, the accumulated for the year is 7.91% and 12.16% in 12 months.
The IPP evaluates the prices of extractive and transformation industries, without taking into account taxes and freight. In August, of the 24 activities monitored, 16 had a negative change in price compared to the month of July.
The main changes came from mining and quarrying industries (-14.18%), petroleum refining and biofuels (-6.99%), metallurgy (-3.91%) and food (-3.74%).
In the case of the oil refining and biofuels sector, it was the first drop of the year, causing the greatest influence on the August IPP, responsible for 0.95 pp of the overall result.
The result came from gasoline and diesel oil, the two products that weigh the most in the calculation of this group.
Food products registered the second negative change in 2022, after -0.19% in January.
As a result, the accumulated for the year in the group went from 10.88% in July to 6.73% in August.
The calculation was impacted by the values of dairy products, especially UHT milk, sugar, meat and chicken offal, in addition to soy oil.
Contrary to the fall in prices, the vehicle sector reached the 26th consecutive month of increase, with 0.64% in August, adding up to 31.87% in the period.
According to the IBGE, the group has been impacted by the increase in electronics prices due to the semiconductor crisis.
In relation to the major economic categories, the August IPP brought -0.39% change in capital goods (BK); -3.60% in intermediate goods (BI); and -2.79% in consumer goods (BC).
If the refining of oil and biofuels contributed to the decline in the IPP in August, in the accumulated result for the year, from 7.91% in August compared to 11.37% in July, the group accounts for the main increase – of 26.49% – followed by pulp and paper (14.45%), non-metallic minerals (13.21%) and beverages (13.02%).
The index accumulated in 12 months decelerated to 12.16%, after 17.94% in July.
The four major changes were petroleum refining and biofuels (45.98%); extractive industries (-26.60%); other chemical products (25.71%); and manufacturing of machines and equipment (18.78%).
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
