FX.co ★ Brazil’s Producer Prices Fall for Third Month

Producer prices in Brazil experienced a 0.36% decline month-over-month in April 2025, easing from March's 0.62% decrease and marking the third consecutive month of deflation. Both the extractive sector, which saw a decrease of 4.43%, and the transformation sector, with a decline of 0.17%, contributed to this downward trend. Out of 24 industrial activities, six reported declines. The most significant reductions were in petroleum-related products at 3.37%, chemical products at 1.08%, and metals at 1%. Conversely, there were increases in the prices of pharmaceutical products, which rose by 2.87%, and hygiene items, which increased by 1.26%. Food prices, the most heavily weighted component of the index, increased by 0.72%. On an annual basis, producer prices grew by 7.27%, representing the slowest pace in five months, down from 8.37% in March. The transformation industry was the primary driver of this annual increase, with a rise of 8.16%, particularly noted in metallurgy, which surged by 15.52%.