Prices paid to Brazilian producers fell by 4.33pc in January from a year earlier, mostly pushed down by the food sector and fuels, according to government statistics agency IBGE.
The decline in the producer price index (PPI) slowed from a 4.51pc contraction in December but quickened from 3.36pc in November and smaller contractions the prior two months. The disinflation in PPI suggests that consumer price inflation, which accelerated to 4.44pc in January from 4.26pc in December, may soon be easing.
The food sector, which accounted for more than half of the total PPI index result, fell by 9.84pc in January from a year earlier, after a 10.48pc annual loss in December, extending a negative streak begun in September, IBGE said. Sugar products and pork were among the main negative drivers, while falling sugar prices were mainly affected by a weakening dollar to the Brazilian real over the last year. IBGE's research manager Murilo Alvim said.
As for crude and biofuels, producer prices for the sector fell by 7.64pc in the last 12-months, following a 5.64pc annual loss in December and marking an eight-month low, IBGE data show.
Metallurgy producer prices fell by 4.91pc in January from a year earlier, following an 8.06pc annual loss in December.
The index ticked up by 0.3pc from December. Brazil's PPI posted 10 consecutive monthly declines from February-November 2025, IBGE said.
Copper and gold contributed the most to inflationary pressures within metallurgy in the monthly comparison, adding up to its 2.73pc. As for chemicals, sulfur-based fertilizers and other imported feedstocks raised producer prices to a 1.7pc gain from December, Alvim said.
PPI measures average prices offered by suppliers to domestic producers of goods and services without considering taxes and freight costs.
