The so-called inflation at the factory gate ended 2025 at -4.53%. This is the second lowest result since 2014, second only to 2023, when there was an average price drop of 4.99%. Last year, there was an increase of 9.28%.
The data is part of the Producer Price Index (IPP), released this Wednesday (11) by Brazilian Institute of Geography and Statistics (IBGE).
The IPP is known as inflation at the factory gate because it measures the variation in the prices of products that leave the industry and before reaching the commerce and consumer, without taxes and freight charges.
The IBGE historical series begins in 2014. In the 12 years of survey, only 2025 and 2023 showed deflation, that is, negative inflation. At the other extreme, in 2020 and 2021, years of the Covid-19 pandemic, the IPP closed positive in double digits.
Check out the IPP from recent years:
- 2014: 2.66%
- 2015: 8.81%
- 2016: 1.71%
- 2017: 4.15%
- 2018: 9.64%
- 2019: 5.19%
- 2020: 19.38%
- 2021: 28.45%
- 2022: 3.16%
- 2023: -4.99%
- 2024: 9.28%
- 2025: -4.53%
Influences
According to IBGE, the industrial activity that most brought down inflation at the factory gate was food, which fell 10.47%. The performance represents a weight of -2.7 percentage points (pp).
The activity had a great influence on the price of sugar, which followed the decline in prices on the international market.
According to IBGE, the activity also contributed to the fall in prices, the appreciation of the real against the dollar (10.6% in 2025), which makes imported products cheaper.
Other downward influences on prices were the extractive industry (-14.39% and impact of -0.69 pp), oil refining and biofuels (-5.64% and -0.56 pp) and metallurgy (-8.06% and -0.56 pp).
According to the IPP manager, Murilo Alvim, in the extractive sector, deflation was justified by lower prices for crude oil, “reflecting an increase in global production and high inventories for much of the year”.
Iron ores became cheaper, he adds, “accompanying an increase in global supply, while global demand remained moderate”.
Official inflation
The IBGE also released official inflation this week, which measures the cost of living for families with incomes of one to 40 minimum wages.
The institute revealed that in January, the Broad National Consumer Price Index (IPCA) marked 0.33%, accumulating 4.44% in 12 months.
