Producer prices in Brazil fall in December

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Values ​​closed the last year with the highest deflation since 2014

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Credit: REUTERS/Ricardo Moraes

São Paulo- Producer prices in Brazil fell 0.18% in December and closed 2023 with accumulated deflation of 4.98%, the lowest rate for a year since the beginning of the historical series in 2014.

In 2022, the Producer Price Index (IPP) had accumulated an increase of 3.16%.

The monthly IPP data released this Thursday by the Brazilian Institute of Geography and Statistics (IBGE) marked the second negative result in a row, after a decline of 0.34% in November.

Over the past year, producer prices fell during most of the first half of the year, rising between August and October and falling again in the last two months of the year.

“When analyzing the 2023 result, it is also necessary to shed light on the exchange rate appreciation accumulated in the year, which eased the cost of importing inputs, made final goods produced abroad more competitive and reduced the amount received in reais by Brazilian exporters” , explained Felipe Câmara, IPP analyst at IBGE.

Among the 24 activities analyzed, IBGE pointed out that in the year to date those with the biggest changes were chemical products (-17.25%), oil refining and biofuels (-15.45%), paper and cellulose (-15 .23%) and metallurgy (-9.77%).

The main influences on the general industry accumulated came from petroleum refining and biofuels (-1.85 percentage points), other chemical products (-1.51 pp), metallurgy (-0.60 pp) and food (-0. 60pp).

The December result was driven by 4.05% lower refining prices, particularly diesel oil.

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

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The article is in Portuguese
Tags: Producer prices Brazil fall December
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