Diesel readjustment accounts for 68% of wholesale inflation in the IGP-10, says FGV

Diesel readjustment accounts for 68% of wholesale inflation in the IGP-10, says FGV

The readjustment in the price of diesel oil at refineries led to the acceleration of wholesale inflation that is part of the General Price Index – 10 (IGP-10) of June, informed the Getulio Vargas Foundation (FGV). The IGP-10 went from an increase of 0.10% in May to a high of 0.74% in June. The index accumulates an increase of 8.53% in the year and an advance of 10.40% in 12 months.

The truce presented by agricultural products in May was not repeated in June and the group variation changed from -1.59% to -0.04%. The acceleration in the prices of cotton (from 2.17% to 6.32%) and of sugar cane (from 1.65% to 2.32%) explain part of the increase in the rate of agricultural products.

Industrial products also registered a slight increase, rising 0.67% in June, compared to 0.54% last month. The price of new cars was highlighted in the producer index (from 0.22% to 2.47%) and to the consumer (from 0.90% to 0.97%).

“Diesel oil stands out, whose last adjustment took place on 05/10, and accounted for 68% of the IPA (Broad Producer Price Index) rate,” said André Braz, coordinator of Price Indexes at the Brazilian Institute of Economics. from FGV (Ibre/FGV), in an official note.

The Broad Producer Price Index (IPA-10) went from a deflation of 0.08% in May to a high of 0.47% in June.

In the analysis by stages of processing, the prices of Final Goods decelerated from 1.12% in May to 0.01% in June, with the main contribution of the processed foods subgroup, whose rate changed from 1.24% to -0.25 %.

The rate for the Intermediate Goods group increased from 0.89% in May to 1.57% in June, driven by the subgroup fuels and lubricants for production, whose rate changed from -0.59% to 7.81%.

The group Gross Raw Materials went from -2.07% in May to -0.29% in June, influenced by the following items: soybeans in grain (from -3.36% to 0.55%), corn in grain ( from -8.49% to -0.31%) and iron ore (from -3.66% to -2.86%). There was relief in the following items: poultry (from 4.78% to -0.61%), pork (from 8.55% to -7.91%) and cassava/cassava (from -4.94% to -7.13 %).

Source: CNN Brasil