Producer Price Index falls 1,29% in May

The Producer Price Index (PPI), which measures price changes at the “factory gate” of extractive and manufacturing industries, fell by 1,29% in May 2025, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). The indicator deepens the downward trajectory that began in April, when the index had fallen by 0,12%.

Among the 24 sectors surveyed, 17 showed price declines. The largest drops were recorded in the metallurgy (-3,46%), other chemical products (-3,11%), extractive industries (-3,03%) and food (-1,33%) segments. The food sector had the greatest influence on the aggregate result for the month, contributing -0,34 percentage points (pp) of the total -1,29% of the general industry.

In the year to date, the IPP has recorded a variation of -1,97%, the second lowest index for a month of May since the beginning of the historical series, in 2014. In the accumulated 12 months, industrial prices rose 5,78%, slowing down compared to the result of April (7,54%).

Featured sectors

Foods: After rising 1,52% in April, prices in the sector fell again, with an average variation of -1,33% in May. In the year, the accumulated drop is 2,81%. Despite this, compared to May 2024, prices are 10,99% higher. Activity was the main influence on both the monthly variation (-0,34 pp), and the accumulated variation for the year (-0,72 pp) and in 12 months (2,67 pp). The reduction in the prices of soybean derivatives and VHP sugar reflected the harvest period and the appreciation of the real against the dollar. On the other hand, concentrated orange juices rose, driven by external demand.

Extractive industries: The sector maintained a downward trend for the fifth consecutive month, with a variation of -3,03% in May. The accumulated total for the year is -15,03%, the most intense among all industrial sectors. In the accumulated total for 12 months, the drop is 7,62%. The decline in crude oil prices continues to be the main factor of negative pressure on the sector.

Oil refining and biofuels: Prices fell 2,77% in May, with diesel oil having a strong negative impact on the PPI once again. The sector is expected to fall by 2,98% in 2025, and the 12-month variation was 0,68%.

Other chemicals: The sector fell 3,11% in May, after having already fallen in April. Despite the decline, the year-to-date figure is still positive (0,34%) and, in 12 months, the increase is 9,36%. Among the products that had the greatest impact are fertilizers based on NPK, lysine, polypropylene and propylene.

Metallurgy: With a 3,46% drop, the sector recorded its fifth consecutive negative monthly result, accumulating a decline of 8,55% in the year. Even so, prices are 10,04% higher than those recorded in May 2024. Products in the aluminum chain led the downward pressures, impacted by international prices and the appreciation of the real.

Major economic categories

The 1,29% decline in May was mainly influenced by intermediate goods, which fell 2,37% and alone accounted for -1,29 pp of the overall result. Capital goods fell 0,02%, while consumer goods remained stable (0,00%), with a slight increase in durable goods (0,35%) and a decrease in non-durable goods (-0,07%).

In the accumulated total for 2025, intermediate goods also pulled the industrial average down, with a drop of 4,37% and an influence of -2,41 pp. Consumer goods accumulated an increase of 1,21%, while capital goods varied by -0,02% in the same period.

In 12 months, consumer goods led the increase, with an 8,93% variation, followed by capital goods (5,94%) and intermediate goods (3,61%).