RIO DE JANEIRO, BRAZIL – Producer inflation has increased by 23.55% in the year-to-date, and all activities monitored by the Brazilian Institute of Geography and Statistics (IBGE) registered increases in August.
“The strong demand in international trade and the devaluation of the Brazilian real against the dollar have impacted industrial prices in the domestic market,” said IBGE producer price index research manager Manuel Souza Neto.
In the food sector, prices increased 2.19% from July to August and this sector accumulates a year-to-date increase of 12.47%. Another important impact occurred in the oil sector: the activity of oil refining and alcohol products rose 1.91%, marking its 4th consecutive increase and inflation this year reaches 47.03%.
Chemical industry prices rose 2.82% in August, the highest increase since April, accumulating a variation of 37.34% in 2021, while metallurgy rose 2.58%, its 14th consecutive positive rate.
Global markets are experiencing inflationary pressures from the rising prices of shipping and raw materials. These are evident in producer prices, which are ultimately reflected in the inflation felt by end consumers.
Suoza explained that the changes in iron ore and crude oil prices directly impact the chemical, refining and metallurgical sectors. In the food sector, commodity exports, such as soybean and corn, put upward pressure on the cost of animal feed and, consequently, of meat purchased for household consumption.