Prices received by rural producers in Rio Grande do Sul fell 2% in May compared to the previous month.

The agricultural sector in Rio Grande do Sul experienced a disparity in May 2026. While the Production Cost Inflation Index (IICP) remained stable, the Inflation Index of Prices Received by Rural Producers (IIPR) registered a decrease, interrupting an upward trend observed in previous months, according to monitoring by Farsul. The IICP closed the month of May with a practically zero variation, an increase of only 0.04%. According to the Economic Advisory of the Farsul System, responsible for the indicators, the relief in costs was driven by the fall in the exchange rate, which made imported inputs such as fertilizers and pesticides cheaper, in addition to the reduction in diesel prices, which decreased the pressure on freight and mechanical operations. Despite the temporary relief, the long-term trend shows a return to cost pressure. Over the past 12 months, the IICP (Cost Index of Public Works) has risen to 3.11%, signaling that costs have started to rise again after the period of deflation seen in 2025. Year-to-date, the increase reaches 5.94%, concentrated mainly in the months of March and April.

Prices received are declining.

Conversely, the scenario for producers was one of devaluation in May. The IIPR (Index of Production Prices) registered a monthly drop of 1.98%, a movement driven mainly by the devaluation of products such as soybeans, rice, and pork. With this result, the IIPR accumulates a drop of 7.64% in 12 months, indicating that the prices paid to producers remain below the levels recorded in the same period of the previous year. The Farsul report also highlights the "mismatch" between what the producer receives and what the final consumer pays on the shelves, measured by the IPCA Alimentos (Food Consumer Price Index). While the IIPR accumulates a contraction in 12 months, the IPCA Alimentos remains under pressure, with an increase of 3.87% in the same period. For analysts, this difference shows that food inflation does not originate in the field, but rather throughout the other stages of the production chain and due to macroeconomic dynamics. 

This text was translated by machine from Brazilian Portuguese.