The PPI is an indicator that measures on a monthly, annual, and cumulative basis the variation in the prices of goods produced and sold by a country's producers, that is to say in the first distribution channel. This PPI index shows whether the prices of goods manufactured in an economy are rising or falling, also acting as an indicator of the evolution of inflation.

The behavior of the annual rate is influenced by the annual variation of: Water supply, sewage disposal (sewerage); Waste management and sanitation activities (6.63%); other service activities (3.62%); arts, entertainment, and recreation activities (3.26%); accommodation and food service activities (2.89%); real estate activities (2.69%); administrative and support service activities (2.65%); teaching (1. 97%); manufacturing industries (1.22%); information and telecommunications (0.91%); electricity, gas, steam, and air conditioning supplies (0.82%); human health care and social work activities (0.48%); professional, scientific and technical activities (0.39%), with transportation and storage being the only activity to show a downward rate of -2.37%.

The increase in the annual rate as of january 2024 (1.43%) was lower than that recorded in january 2023 (5.38%), a result mainly explained by improvements in the supply chain and the reduction of logistical operating costs.

Cumulative inflation at the producer level

The accumulated inflation at producer level as of january 2024 is 1.43%; same value of the monthly variation, because at this point they have the same comparative, december 2023.

For this month of january the PPI was 131.14, like the previous month, indicating a stability in relation to december 2023, which affects an annual variation of 1.43%, however, within the section level there were variations, being the highest: Teaching, other service activities and transportation and storage.

Monthly producer price inflation (PPI) from january 2023 to january 2024. From june 2023 onwards, reductions in the indicator are observed, mainly due to the decrease in prices in Electricity, Gas, Steam and Air Conditioning Supply Activities, as well as a stabilization of prices in the market.

Translated by: A.M