In February 2025, Brazil’s producer price inflation fell to 0.13% from 1.35% in January, marking the smallest rise in 12 months. The food sector’s negative variation contributed largely to this decline. Yearly producer prices rose by 9.69%, the highest since September 2022.
In February 2025, Brazil’s producer price inflation decreased significantly to 0.13%, down from a revised 1.35% in January. This decline, while still marking the 12th consecutive month of price increases, represents the smallest increment recorded in this period. Notably, 14 out of the 24 industrial sectors experienced positive price alterations compared to the previous month.
The food sector, which has the largest weight in the Index of Producer Prices (IPP), saw a decline of 0.84%. This negative variation follows nine months of rising prices and has been a significant factor in the overall slowdown. Alexandre Brandão, an IPP analyst, stated, “This slowdown is mainly driven by the negative price variation in food items.” He also mentioned that the appreciation of the Brazilian real against the dollar between December and January influenced various sectors, including tobacco, timber, and metallurgy.
Despite the monthly decline, annual producer prices increased by 9.69%, representing the highest rise observed since September 2022. This juxtaposition of monthly decreases against annual increases reflects the complexity of Brazil’s inflation landscape.
In conclusion, Brazil’s producer price inflation experienced a notable decline in February 2025, with a rise of only 0.13%, attributed largely to a decrease in the food sector prices. This marks a significant shift within the inflation trajectory, even as annual increases remain substantial at 9.69%. The influence of currency fluctuations and market dynamics are critical in understanding these price movements.
Original Source: www.tradingview.com
