Industrial sector prices fell 1.29% in December 2022 compared to the previous month, the 5th negative result in sequence. With this, industry inflation closed in 2022 with a high of 3.13%, the 3rd lowest accumulated value since the beginning of the historical series in 2014.
The data are from the IPP (Producer Price Index), released on February 1 by IBGE. The 2022 high was approximately 25 p.p. (percentage points) lower than 2021.
“This result consolidates the deflationary trajectory of the industry started in the 2nd semester, which can be associated, to a large extent, with the low commodity prices in the international market.”
“Barrels of oil, iron ore, and fertilizer inputs are some of the prominent products in this regard,” said Felipe Câmara, IPP manager.
“The reduction in the price of crude oil, following international prices, in addition to having a direct impact on the results of extractive industries, naturally causes a reduction in costs along its derivative chain, such as refining and other chemicals, with an impact on the final price charged in these sectors,” he said.
In the case of food, the slight increase observed in December is associated with one-off price increases.
“Products with a major influence on the sector’s results, such as beef and milk, maintained the dynamics of previous months, with prices on a downward trend due to the greater supply at this time of year.”
“Influence overcome by increases such as crystal sugar, caused by a slow expansion of domestic supply, or soybean meal, which followed the current high international market, “said Chamber.
The IPP measures the variation in prices of products at the “factory gate”, that is, without taxes and freight, of 24 activities of the extractive and transformation industries.