Brazil’s Industrial Prices Hit a 14-Month Peak in July

In July, Brazil witnessed a significant surge in national industrial prices, which increased by 1.58% from June.

This rise marks the highest increase since May 2022, as reported by the Brazilian Institute of Geography and Statistics (IBGE).

Previously, the increase was a more modest 1.26%. Currently, the Producer Price Index (IPP) shows a consistent upward trend with six consecutive months of growth.

Year-to-date, the index has risen by 4.18%, while the 12-month rise reached 6.63%. This contrasts sharply with last year’s July, where prices had decreased by 0.76%.

Murilo Alvim, an IPP analyst, highlighted that these figures represent the sixth straight positive change. He noted this as the most substantial rise since the 1.81% increase in May 2022.

Comparatively, the cumulative increase now stands at 4.18%, a stark reversal from last year’s decline of 7.17% by July.

“From June to July, the year-on-year growth accelerated from 4.17% to 6.63%,” Alvim stated, emphasizing the significant momentum within the industry.

The survey covered 24 industrial activities, with 21 showing price increases over the previous month. This is up from 18 in June.

The most notable increases occurred in metallurgy, paper and cellulose, extractive industries, and petroleum refining and biofuels, recording rises of 4.47%, 3.79%, 3.48%, and 2.83% respectively.

Alvim observed that the price hike was widespread across the industry. He pointed out that 21 of the 24 surveyed sectors reported increases.

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