Industrial prices in Brazil drop 1.96% in September

The Producer Price Index (IPP) in Brazil, which calculates the price variation of products at the factory gate, registered deflation (price drop) of 1.96% in September.

The drop, however, was more moderate than in August, when the IPP had a deflation of 3.04%.

According to data released today (26) by the Brazilian Institute of Geography and Statistics (IBGE), the IPP accumulated inflation rates of 5.87% in the year and 9.76% in 12 months.

In September, 11 of the 24 surveyed activities experienced deflation. The main impacts came from oil refining and biofuels (-6.79%), other chemical products (-6.20%), foodstuffs (-1.13%), and metallurgy (-3.77%).

On the other hand, 13 activities showed inflation, especially tobacco (3.62%) and clothing (3.50%).

Among the industry’s four main economic categories, the main drop in prices came from intermediate goods, i.e., the industrialized inputs used in the production sector (-2.42%). There was also deflation in semi- and non-durable consumer goods (-2.01%).

Capital goods, i.e. machinery and equipment used in the productive sector, saw inflation of 0.48%, while the prices of durable consumer goods rose 0.19%.