IGP-10 drops 0.69% in August with help from food and fuel, says FGV

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O IGP-10 (General Price Index – 10) fell 0.69% in August, after having advanced 0.60% in the previous month, informed the Brazilian Institute of Economics of Fundação Getulio Vargas (Ibre-FGV) this Wednesday (17)

As a result, the index accumulates an increase of 8.43% in the year and 8.82% in 12 months. In August 2021, the index had risen 1.18% in the month and accumulated an increase of 32.84% in 12 months.

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The indicator –which measures the variation in prices of products and services from the 11th of the previous month to the 10th of the current month– had as main influences for the fall the price of fuels and electricity, under the impact of the reduction of ICMS , and the value of food.

“The IPC numbers still reflect the reduction of ICMS for electricity and gasoline, an effect that should lose strength throughout the month of August. As for the IPA, important commodities sustain the drop in the indicator, especially iron ore (from -5.93% to -11.09%), beef (from -0.46% to -5.93%) and soybeans (from -0.78% to -2.14%)”, says André Braz, coordinator of the institution’s Price Indexes.

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It is worth mentioning that the IGP comprises 60% of the IPA (Broad Producer Price Index), 30% of the IPC (Consumer Price Index) and 10% of the INCC (National Construction Cost Index).

You wholesale prices measured by the IPA-10 fell 0.65% in August, compared to a rise of 0.57% in July. You consumer prices verified by the IPC-10 fell by 1.56% in August, after increasing by 0.42% in July. The INCC-10, which measures the construction prices rose 0.74% in August, after rising 1.26% in July.

Bigger drops if high

Falls in gasoline prices (-16.88%), airfare (-28.95%), electricity (-4.14%) and ethanol (-10.82%) pushed consumer deflation measured by the IGP- 10.

Five of the eight IPC-10 expenditure classes recorded lower rates of change: Transport (from -0.41% in July to -5 71% in August), Education, Reading and Recreation (from 1.52% to -5 75%), Housing (from 0.07% to -0.52%), Food (from 1.48% to 0.99%) and Clothing (from 0.80% to 0.44%).

The main contributions to the movement came from the following items: gasoline (from -1.49% to -16.88%), airfare (from 6.99% to -28.95%), residential electricity tariff (from -1 .45% to -4 14%), beef (from 0.27% to -0.65%) and clothing (from 0.99% to 0.36%).

In the opposite direction, the groups Health and Personal Care (from 0.24% to 0.57%), Communication (from -0.79% to -0.31%) and Miscellaneous Expenses (from 0.22% to 0, 32%) showed an increase in their rates of change. The main influences came from the items: toiletries and personal care (from -1.34% to 0.36%), telephony, internet and pay TV combo (from -1.79% to 0.39%) and cigarettes (from 0.68% to 2.65%).

commodities

Falls in commodity prices led to wholesale deflation included in the August IGP-10 index, according to the FGV. “The IPC (Consumer Price Index) numbers still reflect the reduction of ICMS for electricity and gasoline, an effect that should lose strength throughout the month of August.

As for the IPA (Broad Producer Price Index), important commodities sustain the drop in the indicator, especially iron ore (from -5.93% to -11.09%), beef (from -0.46 % to -5 93%) and soybeans (from -0.78% to -2.14%)”, said André Braz, coordinator of Price Indexes at the Brazilian Institute of Economics at FGV (Ibre/FGV), in an official note. .

Construction

The milder rise in the cost of labor and construction materials slowed down the sector’s inflation within the IGP-10. Within the INCC-10, the index that represents the cost of Materials, Equipment and Services went from an increase of 0.88% in July to an increase of 0.38% in August.

Spending on Materials and Equipment rose 0.34% in August, while Services costs rose 0.60% in the month. The index that represents the cost of Labor went from a high of 1.67% in July to an increase of 1.13% in August.

IPAs

Agricultural prices measured by the Agricultural IPA rose 0.19% at wholesale in August, following a rise of 0.16% in July. The prices of industrial products measured by the Industrial IPA fell by 0.98% this month, after a 0.73% increase in wholesale prices in July.

Within the Wholesale Price Index according to Stages of Processing (IPA-EP), which allows viewing the transmission of prices along the production chain, the prices of final goods fell by 0.27% in August, compared to an increase of 0 .99% in July.

Intermediate goods prices rose 0.19% in August, after rising 1.59% in the previous month. Crude raw material prices dropped 1.90% in August, after falling 0.91% in July.

*With Estadão Content

Source: CNN Brasil

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