01/04/2024 – 12:52
The 0.43% drop in the prices of industrial products at the factory gate in November was due to reductions in 13 of the 24 activities surveyed, according to data from the Producer Price Index (IPP), released by the Brazilian Institute of Geography and Statistics (IBGE).
In November, the sharpest price drops occurred in extractive industries (-7.09%), other transport equipment (-2.11%), wood (-1.77%) and tobacco (-1.73 %).
Extractive industries made the biggest negative contribution to the November IPP, -0.37 percentage points, followed by other chemical products, with a decrease of 1.36% and an impact of -0.11 percentage points.
“Two movements were important in shaping the month's result: the current exchange rate appreciation, the second most intense of the real against the dollar in the year, and the drop in the price of a barrel of oil on the international market. As has been happening in recent months, the diffuse profile of inflationary dynamics has prevailed in the industry, with no clear signs of consolidated transfer throughout most of the production chains”, assessed Felipe Câmara, IPP analyst at IBGE, in an official note.
In the opposite direction, the food sector was the one with the greatest pressure in the composition of the month's IPP, with an increase of 0.56% and 0.14 percentage points of influence. Oil refining and biofuels activity rose 0.83%, a contribution of 0.09 percentage points.
Despite the price increase in November, the food sector accumulated a decline of 3.36% for the year. In oil refining and biofuels, there was a drop of 11.89% in the year to date.
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