IGP-10 drops 0.90% in September after recording a decline of 0.69% in August, says FGV

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The General Price Index – 10 (IGP-10 ) fell by 0.90% in September, compared to a drop of 0.69% in the previous month, informed the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre-FGV) this Friday (16).

As a result, the index accumulates a high of 7.45% in the year and 8.24% in 12 months. In September 2021, the index had fallen by 0.37%, with a cumulative 12-month high of 26.84%.

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“Fuel continues to contribute to the cooling of inflationary pressures at the producer and consumer level”, says André Braz, coordinator of price indices, in a note.

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 drop the price of fuels and electricity, under the impact of the reduction of ICMS , and the value of food.

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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).

In the IPA, the variation rate of diesel was the main influence on the side of the declines, going from a high of 2.28% to a decrease of 6.70%. In the CPI, the rate of change of gasoline fell less (from a drop of 16.88% to a decline of 9.66%), but remained as the greatest negative influence, observes the expert.

IPA

The IPA fell 1.18% in September compared to a 0.65% in the previous month.

In the analysis by stages of processing, the prices of Final Goods changed from -0.27% in August to -0.52% in September. The main contribution to this result came from the fuels for consumption subgroup, whose rate went from -3.16% to -7.88%.

The rate for the Intermediate Goods group changed from 0.19% in August to -1.72% in September. The main contribution to this movement came from the subgroup fuels and lubricants for production, whose rate changed from 1.74% to -6.94%.

The index for the group Gross Raw Materials went from -1.90% in August to -1.17% in September. The main contributions to the less negative rate of the group came from the following items: iron ore (-11.09% to -4.48%), corn in grain (-4.02% to 1.28%) and cotton in lump (-10.53% to 4.32%).

CPI

The CPI fell by 0.14% in September compared to a drop of 1.56% in August. Five of the eight expense classes that make up the index registered an increase in their rates of change: Education, Reading and Recreation (-5.75% to 4.00%), Transport (-5.71% to -2.97%), Housing (-0.52% to 0.08%), Health and Personal Care (0.57% to 0.83%) and Clothing (0.44% to 0.68%).

The main contributions to this movement came from the following items: airfare (-28.95% to 25.14%), gasoline (-16.88% to -9.66%), residential electricity tariff (-4.14 % to -1.54%), toiletries and personal care (0.36% to 1.65%) and clothes (0.36% to 0.80%).

On the other hand, the Food groups (0.99% to -0.24%) Communication (-0.31% to -0.88%) and Miscellaneous Expenses (0.32% to 0.15%) showed a decrease in their rates of change.

In these expense categories, the main influences came from the following items: dairy products (10.03% to -1.24%), telephony, internet and pay TV combo (0.39% to -0.43%) and cigarettes (2.65% to 1.48%).

INCC

The INCC changed -0.02% in September compared to a rise of 0.74% in August.

The three groups that make up the INCC recorded the following changes from August to September: Materials and Equipment (0.34% to -0.32%), Services (0.60% to 0.44%) and Labor ( 1.13% to 0.17%).

Source: CNN Brasil

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