Brazilian industry costs rise 10.7% in 2022 – CNI report

By Victor Moraes

Industry costs in Brazil registered a 10.7% increase in 2022, compared to the previous year, according to the National Confederation of Industry (CNI).

According to business people, the increase was related to three major factors: production costs, capital, and taxes.

The production costs are linked to the heating up of the labor market increase in the average income of workers and occupations, indicates economist Paula Verlangeiro.

“This contributed to the rise in salaries and personnel costs.”

“Besides this, we had the increase in commodity prices and the disarrangement of the global input chains, which caused the costs of intermediate goods, domestic and imported, to rise in the period.”

“Finally, the issue of the war between Russia and Ukraine disrupted the energy issue, increasing the price of oil and natural gas.”

“These three production cost components were greatly influenced by the generalized price increase, which means inflation,” he explains.

The cost of capital reflects the increase in the basic interest rate, from 9.25% in January to 13.75% per year since August.

In the comparison between 2022 and 2021, there was a 13% decrease in tax collection due to the PIS/Confins and Value-Added Tax (ICMS) exonerations on fuels and the Tax on Industrialized Products.

With information from Jornal da Manhã

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