IPP
Industry prices fall 0.25% in February, under strong impact of food
March 31, 2026 09h00 AM | Last Updated: March 31, 2026 12h00 PM
National industry prices changed -0.25% in February compared to January (0.32%), mainly influenced by the food sector, which registered a change of -0.87%, impacting the overall result by -0.21 p.p. After two consecutive positive rates, February again shows a negative change. In the cumulative index in the year, the change stayed at 0.07%. In the last 12 months, the Index fell by -4.47%. In February 2025, the monthly change had been -0.12%.
The information comes from the Producer Price Index (IPP) for Mining and Manufacturing Industries, released today (31) by the IBGE. The survey measures the prices of products “at the factory gate,” without taxes and freight, and covers the broad economic categories.
A total of 13 out of 24 industrial activities investigated in the survey showed negative price changes compared to the immediately previous month. In January, ten activities had lower average prices compared to the previous month. The four most intense changes were: electrical machines, appliances and materials (1.73%); toiletries, soaps and cleaning products (1.44%); basic metals (1.41%); and wearing apparel (1.32%).
The Food sector, which has the greatest weight in the IPP, currently representing around 24% of the survey, stood out in the monthly indicator, with a change of -0.87% from January to February, the tenth in a row in the negative field. In the cumulative index in the year, the change is -1.12%. The cumulative rate in 12 months, -10.00%, is more intense than that of January, -9.92%.
The sector stood out for appearing as the third largest change, in module, from the perspective of M/M-12and for being the main influence in both the monthly (-0.21 p.p. out of -0.25%) and annual (-2.53 p.p. out of -4.47%) comparison and the second in the cumulative index in the year (-0.27 p.p. out of 0.07%).
According to Alexandre Brandão, Analysis, Methodology and Planning manager, the greater influence of food can be largely explained by the drop in the price of sugars.
“In the case of food, sugars were mainly responsible for the drop. This movement reflects both the reduction in prices in the international market and the intensification of promotions and discounts by companies during the period, indicating an environment of greater negotiation and taking advantage of market opportunities,” said the manager.
Basic metals were responsible for 0.10 percentage points (p.p.) of influence on the 0.25% change of the general industry. Still in this regard, other activities that also stood out were motor vehicles (-0.05 p.p.) and electrical machines, apparatus and materials (0.05 p.p.).
“In the sector of basic metals, the increase in prices stood out, especially among non-ferrous metals, with an emphasis on gold, which had the biggest impact on this increase. In the segment of electrical material, the behavior was mainly influenced by the rise in copper, whose appreciation has continued over time. In these cases, the results are associated, above all, with cost pressures, in the case of electrical material, and the strong international demand for commodities, in the case of basic metals,” added the expert.
From the perspective of the broad economic categories, the February result recorded a -1.29% change in capital goods (BK); -0.25% in intermediate goods (BI); and -0.03% in consumer goods (BC), with the change observed in durable consumer goods (BCD) being -0.15%, while in semi-durable and non-durable consumer goods (BCND) it was -0.01%.
The main influence among the Broad Economic Categories was exerted by intermediate goods, whose weight in the composition of the general index was 53.77% and accounted for -0.13 p.p. of the -0.25% change in the mining and manufacturing industries.
Completing the list are capital goods, with an influence of -0.10 p.p. and consumer goods with -0.01 p.p. In the case of consumer goods, the influence observed in February is divided into -0.01 p.p., which was due to the change in the prices of durable consumer goods, and 0.00 p.p. associated with the change in semi and non-durable consumer goods.
Know more about the IPP
The IPP aims at measuring the average change of sale prices received by the domestic producers of goods and services, as well as their evolution over time, signaling the short-term inflationary trends in Brazil. It is a key indicator for the macroeconomic follow up and, consequently, a valuable analytical instrument for decision makers, either public or private.
The survey investigates, in a few more than 2,100 enterprises, the prices received by producers, free from tax, tariffs and freight, defined according to the most usual commercial practices. Nearly 6 thousand prices are collected monthly. The complete IPP tables are available on Sidra. The next release of the IPP, for March, will be on April 29.
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