In February 2025, Brazil’s producer price inflation decreased to 0.13%, down from 1.35% in January. The food sector recorded a significant negative contribution to this slowdown, with overall annual producer prices increasing by 9.69%.
In February 2025, Brazil experienced a significant decrease in producer price inflation, which fell to 0.13%, down from a revised rate of 1.35% in January. This decline marks the smallest price increase in twelve consecutive months, with 14 of the 24 measured industrial sectors reporting positive price changes compared to the previous month.
The food sector, which holds considerable weight in the Industrial Price Index (IPP), showed a notable decline of -0.84%, contributing the most to the overall slowdown as it recorded a negative variation for the first time in ten months. Alexandre Brandão, an analyst with the IPP, noted, “This slowdown is mainly driven by the negative price variation in food items. Additionally, the appreciation of the real against the dollar between December and January affected various sectors, including tobacco, timber, food, and metallurgy. Market factors also played a role in explaining the observed price movements.”
On an annual basis, producer prices increased by 9.69%, representing the highest growth since September 2022. This data highlights the volatility and dynamics of the Brazilian economy, particularly within the manufacturing and agricultural sectors.
In summary, Brazil’s producer price inflation has shown a notable decrease in February 2025, primarily influenced by changes in the food sector and currency strength. The year-on-year growth remains significant, indicating an ongoing recovery in overall producer prices despite recent fluctuations. Analysts continue to monitor these trends closely, as they hold implications for economic stability.
Original Source: www.tradingview.com
