Brazil Producer Prices Extend Monthly Decline

Brazil’s producer prices fell 0.83% month-on-month in July 2026, extending a downwardly revised 0.81% decline in June and marking the sharpest monthly drop in more than a year. Eleven of the 24 industrial activities surveyed recorded price decreases. Petroleum refining and biofuels led the decline, falling 5.65%, followed by other chemicals (-4.49%) and extractive industries (-4.38%). Manufacturing industry prices fell 0.67% overall. In contrast, computers, electronic and optical products recorded the largest increase, at 11.37%. By major economic category, capital goods prices rose 2.75%, while intermediate goods fell 1.83% and consumer goods declined 0.10%. Within consumer goods, durable goods decreased 0.37%, while semi-durable and non-durable goods fell 0.05%. Producer prices rose 3.09% year-to-date and 1.94% over the 12 months through July.

Brazil's producer prices fell 0.77% month-over-month in June 2026, following a 0.30% decline in May and marking the sharpest monthly drop in a year. The decrease was driven mainly by the extractive industries, where producer prices plunged 11.85% as crude oil, iron ore, and natural gas prices declined after geopolitical tensions in the Middle East eased and shipping through the Strait of Hormuz increased. Other major negative contributors included chemicals (-2.74%) and oil refining and biofuels (-2.30%). Among major economic categories, intermediate goods fell 1.7% and were the main drag on the index, while capital goods rose 1.02% and consumer goods increased 0.25%. Producer prices rose 3.99% in the first half of 2026 and were up 2.51% from a year earlier.

Brazil’s producer prices fell 0.3% month-over-month in May 2026, reversing from a 2.62% increase in April and marking the sharpest monthly decline since November 2025. Seven of the 24 industrial sectors surveyed recorded price drops. The steepest decline came from extractive industries, which fell 5.9%, while rubber and plastics rose 4.8%, wood products advanced 3.1%, and chemicals increased 2.1%. Food products exerted the largest downward pressure on the headline index, declining 2.1%, as lower prices for sugar, UHT milk, and roasted coffee reflected seasonal harvest effects and the appreciation of the Brazilian real. Prices in oil refining and biofuels fell 1.3%, pressured by declines in diesel and ethanol, with the advance of the sugarcane harvest contributing to lower alcohol prices. Chemical prices rose on higher international petrochemical costs linked to tensions in the Middle East, while rubber and plastics continued to reflect pass-through from higher feedstock costs.