Production costs in October were lower, but prices received also have deflation

The month of October ended with a drop in production costs, but with producers receiving less than in September, according to the report released by the economic team of Farsul this Wednesday (03/12). The Index of Inflation of Production Costs (IICP) recorded a decrease of 0.22% compared to September. This decrease was driven by the reduction in costs for fertilizers and irrigation. Despite the increase in the exchange rate, there was deflation in the international price of the first item. This ended up stimulating exports and decreasing the domestic cost for the producer. The drop in irrigation is a reflection of lower consumption and lower diesel prices. On the other side of the balance, the Index of Inflation of Prices Received by Rural Producers (IIPR) registered deflation, of 2% compared to last month, which had already had a strong retraction. The highlights were wheat (-9.1%), a reflection of the intensification of the harvest; rice (-8.8%), influenced by ...