Producer prices in Brazil fell 0,20% in August, according to IBGE.
The result led the index to register a 12-month increase of 0,48%, having accumulated a 3,62% decrease for the year.
Reuters - Producer prices in Brazil fell in August for the seventh consecutive month, although the pace of deflation has slowed, the Brazilian Institute of Geography and Statistics (IBGE) reported on Friday.
The Producer Price Index (PPI) fell 0,20% in August, the least intense monthly negative rate since April (-0,12%) and after a 0,31% decline in July. This result brought the index to a 12-month increase of 0,48%, accumulating a 3,62% decrease for the year.
Among the 24 activities analyzed, IBGE pointed out that 12 had a price decrease compared to the previous month, with the most intense variations recorded in perfumes, soaps and cleaning products (-1,66%); wood (-1,59%); computer equipment, electronic and optical products (-1,59%); and paper and pulp (-1,42%).
The main influences in August came from food (-0,11 percentage points), other chemical products (-0,08 pp), extractive industries (-0,06 pp) and paper and pulp (-0,04 pp).
"If we look at what happens with the year-to-date figures, we will see that the main impacts came from sectors with a large weight in the industry: food, metallurgy, extractive industries and refining," said Alexandre Brandão, manager of the index.
"There are several explanations for these price movements, but in the case of food, for example, the harvest is a major factor explaining the reduction; it is no coincidence that sugar, soy, and rice stand out as the main influences on the year-to-date figures," he added.
Food sector costs fell 0,44% in August, accumulating a 7,55% decline for the year, but rising 1,45% over 12 months.
The IPP measures the variation in product prices at the “factory gate,” that is, without taxes and freight, for 24 activities in the extractive and manufacturing industries.
