By Paula Martini
The so-called “factory gate” inflation, excluding taxes and freight, had a drop of 0.35% in April, compared to March, according to the Producer Price Index (IPP), released on Tuesday (30) by the Brazilian Institute of Geography and Statistics (IBGE).
This was the indicator’s third consecutive negative result.
In March, prices had dropped 0.65% compared to the previous month (data revised from a drop of 0.66%).
In the 12-month accumulated result until April, the drop was 4.63%, the largest in the historical series for the indicator, which began in 2014.
In the year-to-date, there was a 0.99% drop, the second lowest for March since the beginning of the historical series.
Until March, the accumulated fall in 12 months of the IPP was 2.3% (revised data from a fall of 2.32%).
Twelve of the 24 activities followed by the IPP had a price drop in April, the same level as in March.
The industry PPI is formed by two indexes: the transformation industry and the extractive industry.
The transformation industry rate fell 0.45% in April, compared to 0.71% in March (revised data from a 0.73% drop).
On the other hand, the extractive industry’s IPP rose 1.7% in April, after a high of 0.68% in March (unchanged from the previous release of 0.68%).
According to IBGE, the greatest influences for the fall in the IPP in April came from price variations in the pharmaceutical industry (-3.97%); paper and cellulose (-3.57%); wood (-3.19%); and other chemical products (-2.61%).
The other chemicals category was the most important industrial sector in the composition of the aggregate result, in the monthly comparison, according to IBGE.
With information from Valor
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