Producer costs in Brazil speed up excessive to 1.21% in July for meals and refining

Among foods, the products that most influenced the result were milk and dairy products, sugar, soy derivatives and meat.

Producer prices in Brazil accelerated the rise to 1.21% in July under the weight of food and oil refining, informed the Brazilian Institute of Geography and Statistics (IBGE) this Friday.

In June, the Producer Price Index (PPI) had risen 1.01%, after jumping 1.81% in May. The result led the index to accumulate a high of 18.04% in the 12 months through July, from 18.78% in June.

Among the 24 activities analyzed, the IBGE pointed out that the biggest positive influences on the July result came from food –impact of 0.69 percentage point, after a rise of 2.97%– and petroleum refining and biofuels –impact of 0.46 point and an increase of 3.45%.

“The highlights of the month were the food and petroleum refining and biofuel groups. The two together accounted for 1.15 percentage points of the variation that took place in July,” said IPP manager Manuel Campos.

According to him, among foods, the products that most influenced the result were milk and dairy products, sugar, soy derivatives and meat. In petroleum refining, the highlight was diesel oil and gasoline.

The largest monthly changes were on account of the manufacture of tobacco products (7.01%), metallurgy (-4.03%), petroleum refining and biofuels (3.45%) and food (2.97%).

Among the major economic categories in July, the costs of capital goods rose 2.14%, while intermediate goods rose 1.08% and consumer goods increased 1.28%.

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.

Source: Reuters