Producer prices in Brazil began to rise 1.83% in May, decelerating from the 2.08% rate in the previous month and accumulating a 19.15% increase in the last 12 months, informed the Brazilian Institute of Geography and Statistics ( IBGE) this Friday (1st).
In the month, the mining and quarrying industry was the highlight with the greatest change, 12.50%, leaving behind the deflation of 11.54% seen in April.
“The two products with the greatest weight in extractive industries – crude petroleum oil and iron ore – contributed to the highlight in the May IPP for similar reasons”, explained research analyst Felipe Câmara.
“The combination of exchange rate depreciation with recovery of international prices is important to explain the increase in prices of extractive industries, the main responsible for the general result in the month”, he added.
On the other hand, the food industry saw prices slow down to a 0.32% increase in May from 2.21% earlier, amid the end of the soybean harvest and the higher level of cattle slaughter, which increased the offer in these two chains.
The IPP measures the price variation of products at the “factory door”, that is, without taxes and freight, in 24 activities in the extractive and transformation industries.
Source: CNN Brasil
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