Producer costs in Brazil fall once more in September on oil refining

Producer prices in Brazil registered the second biggest drop in the historical series in September, of 1.96%, under the strong influence of the oil refining and biofuels industry, informed the Brazilian Institute of Geography and Statistics (IBGE) this Wednesday ( 26)

In August, the Producer Price Index (PPI) had fallen by 3.04%, which marked the record of the series started in 2014.

The September result led the index accumulated in 12 months to a high of 9.76%.

According to Felipe Câmara, a research analyst, the last time there was a two-month sequence of deflation was more than three years ago.

“We are facing a continuous movement. In terms of historical perspective, the last time there were two consecutive months of PPI retraction was in June/July 2019,” he said.

Among the 24 activities analyzed, the IBGE pointed out that the highlight was the decrease of 6.79% registered by the oil refining and biofuels industry, exerting the greatest influence on the index for the month.

Among the major economic categories, the costs of intermediate goods fell by 2.42% and those of consumer goods fell by 1.66%. On the other hand, capital goods increased by 0.48%.

The IPP measures the variation in prices of products at the “factory door”, that is, without taxes and freight, of 24 activities in the extractive and transformation industries.

(Reuters)