Producer prices in Brazil fell by 1.29% in December, registering a negative rate for the fifth consecutive month and ending 2022 with an accumulated increase of 3.13%. In November, the Producer Price Index (IPP) had fallen by 0.52%.
Last year’s result, released this Wednesday (1st) by the Brazilian Institute of Geography and Statistics (IBGE), was the third lowest since the beginning of the historical series in 2014. It was also well below the high of 28.45% seen in 2021.
“This result consolidates the deflationary trajectory of the industry that started in the second half, which can be largely associated with the low prices of commodities in the international market”, explained Felipe Câmara, manager of the IPP, highlighting a barrel of oil, iron ore and fertilizer inputs.
“The reduction in the price of crude oil, following international prices, in addition to having a direct impact on the results of extractive industries, naturally causes a reduction in costs along its derivative chain, such as refining and other chemical products, with an impact on in the final price practiced in these sectors”, he added.
Among the 24 activities analyzed, the IBGE pointed out that 15 registered a decrease in prices compared to November, with the greatest variations in extractive industries (-7.21%), petroleum refining and biofuels (-5.46%), wood (-2 .96%) and other chemical products (-2.79%).
Only the oil refining and biofuels sector was responsible for -0.68 percentage points of influence in the month’s variation.
Already in the accumulated of the last year the biggest variations were presented by paper and cellulose (19.45%), printing (19.17%), perfumery, soaps and cleaning products (16.99%) and manufacture of machines and equipment ( 15.71%).
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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