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After consecutive increases, the Production Cost Inflation Index registers a drop in June

Price Inflation Index received by Rural Producers also declined last month; the main factor that impacted the result in production costs was the price of fertilizers

22.07.2022 | 13:57 (UTC -3)

Press Sistema Farsul/CNA

Price Inflation Index received by Rural Producers also declined last month; The main factor that impacted the result in production costs was the price of fertilizers. - Photo: Wenderson Araujo/CNA

After three months of consecutive increases, the Production Cost Inflation Index (IICP) fell 1,19% in June compared to the previous month. The Price Inflation Index received by Rural Producers (IIPR) also fell by 1,5% in the period. The data was released this Thursday (21/07) by Farsul. The report data and the historical series of indicators are available on the Farsul Big Data.

The main factor that impacted the result in production costs was the price of fertilizers. In 12 months, IICP accumulated an increase of 40,68%. Farsul's economic consultancy highlights that this increase occurs on an already high base. 2021 was already a year of strong increase in the indicator. In the year to date, IICP reached inflation of 9,08%.

In the case of IIPR, soybean and corn prices were the main reasons for the drop in the indicator. In 12 months, the IIPR points to an increase of 13,60%. Despite the positive result for producers' revenue, costs grow at a faster rate, narrowing the activity's profit margins.

Farsul also highlights that the IIPR growth in 12 months is below the IPCA Alimentos (13,93%), demonstrating that consumer prices are rising more sharply than the values practiced in the field. The same situation happens with the IICP in relation to the IPCA, even though the country is going through a period of general inflation (1,89%).

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