RIO DE JANEIRO, BRAZIL – Brazil’s production prices slowed the high to 1.31% in November, from 2.26% in October. The rate accumulated in 12 months reached the lowest level in almost a year, data released this Wednesday by the Brazilian Institute of Geography and Statistics (IBGE).
The result led the Producer Price Index (IPP) to accumulate in the 12 months to November an increase of 28.86%, the fifth consecutive month in deceleration, and the lowest value since February 2021 (28.50%).
Among the 24 activities analyzed, IBGE pointed out that 17 had favorable variations in November. The most significant influences on the index came from the refining of Petroleum and alcohol products (0.71 percentage point), other chemical products (0.47 point), and extractive industries (-0.31 point).
The survey manager at the IBGE, Manuel Campos Souza Neto, explained that the sectors with the most significant impact on the November index were influenced by international trade.
“Oil derivatives due to crude oil increases during the year, despite the drop this month, and the extractive sector due to a huge drop in iron ore prices,” he said in a statement.
The prices of petroleum derivatives and alcohol increased by 6.63% in the month and reached 80.13% in 12 months. The chemical sector presented an advance of 4.90%, accumulating an increase of 60.69% in 12 months.
The extractive sector had a fall of 5.21%.
The IPP measures the variation in product prices at the “factory door”, excluding taxes and freight, of 24 activities in the extractive and manufacturing industries.