The IGP-M (General Price Index – Market) dropped 0.70% in August, after rising 0.21% in July, according to the Getúlio Vargas Foundation (FGV). This is the first negative rate since September last year.
O CNN Specialist in economics Alexandre Schwartsman explained that the drop was mainly due to the reduction in fuel prices.
The price of fuel influences the Consumer Price Index (IPCA) and the Wholesale Price Index (IPA), components that influence the IGP-M. According to Schwartsman, the rate should not continue to fall.
“For it to continue to fall, there should be further rounds of tax cuts planned.”
O CNN Specialist said that in the following months we should return to the “normality” of inflation above the target.
“The fall is a one-off phenomenon that should not be repeated in the coming months,” he said.
See more in the video above.
Source: CNN Brasil
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