The Industrial Product Price Index (IPPI) declined 0.5% in August, after increasing 0.2% in July. Of the 21 major commodity groups, 2 were up, 11 were down and 8 were unchanged.

The decline in the IPPI in August was mainly attributable to prices for meat, fish, and dairy products (-2.3%), which posted their largest decrease since October 2007. The main reason for the lower prices in this commodity group was fresh and frozen pork (-5.8%) and, to a lesser extent, fresh and frozen beef and veal (-2.8%). The price of fresh and frozen beef and veal began a downward trend in September 2015, recording a 17.9% year-over-year decline in August 2016. This decrease coincided with a 25.5% year-over-year drop in the price of cattle and calves in August. Prices for fresh and frozen pork have fallen 0.3% since August 2015; however, they were down 8.6% over the past two months (July and August 2016).

Energy and petroleum products (-1.3%) also exerted downward pressure on the IPPI, as prices for heavy fuel oils (-4.9%), light fuel oils (-1.6%), diesel fuel (-1.6%) and motor gasoline (-0.5%) fell in August. The IPPI excluding energy and petroleum products declined 0.3%.