FERTILIZER SPENDING RAISES SEPTEMBER PRODUCTION COST INFLATION

The Production Costs Inflation Index (IICP) in the State of Rio Grande do Sul increased by 3.68% in September compared to August, influenced by the high exchange rate, which was reflected in higher costs for the producer, especially in fertilizer spending. According to the Federation of Agriculture and Livestock of Rio Grande do Sul (Farsul), responsible for calculating the index, in the year to date the IICP increased by 10.73% and, in 12 months, by 13.95%. “These changes are also attributed to the effect of the exchange rate on fertilizers, since the exchange rate in August was 32% higher than the same month last year”, Farsul said in a bulletin. The Inflation Index of Prices Received by Rural Producers (IIPR) showed a strong increase, from 5.27% in September to August, stimulated mainly by the higher price of soya and corn. In the accumulated index of the year and in 12 months the IIPR also appreciated, 24.21% and 29.61%, respectively.

Src.: Global Fert