Producer Price Index rises 0.74% in April

Of the 24 industrial activities investigated in the survey, 20 showed an increase in April. The biggest variations recorded were in paper and cellulose (3.99%); extractive industries (-3.58%); smoking (2.49%); and pharmaceutical (2.10%). Among the sectors with the greatest influence on producer prices are food, extractive industries, paper and cellulose and oil refining and biofuels.

The research analyst, Felipe Câmara, explains that the result of the index in the month is related, in particular, to the behavior of the chains derived from soy and sugar cane, specifically to the higher prices of crude soy oil and ethanol at the factory gate.

“On the demand side, the price of soybean oil responded to the competition between food manufacturing and biodiesel, in a context of domestic availability of the grain affected by the lower productivity of the current harvest and the higher volume of exports in the first quarter. The impact on goods destined for final consumption was felt more clearly in the price of margarine, while crude oil itself had this impact reflected in the increase in intermediate goods”, points out Felipe Câmara.

André Galhardo, economic consultant at Remessa Online, in São Paulo (SP) and master in Political Economy, assesses that the acceleration of the index is concentrated in the manufacturing industries. According to him, the increase seen in April reflects the acceleration of prices in the manufacturing industry, as extractive industries have recorded successive deflations, including in the last quarter.

André also assesses that it is too early to say that the increase in the IPP in April, and recorded in the last quarter, could be reflected in the amounts paid by consumers, as this can only happen with a significant increase in the index.

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The Producer Price Index (IPP) for Extractive and Processing Industries measures the prices of products “at the factory gate”, without taxes and freight — and covers the major economic categories.