Inputs and raw materials cause cost rise in Brazilian industry
The Industrial Cost Indicator increased 8.6% in the third quarter of 2020, compared to the second quarter. It’s the biggest cost rise since the start of the time series in 2006. This is in part an adjustment relative to a temporary cost decrease that happened in the second quarter, due to the crisis and to crisis mitigation policies put in place by the government. Another part of the increase in cost is related to the progressive cost increases for intermediate goods along 2020, which is persistent and tends to impact the cost of the fourth quarter of 2020 and of 2021.