IGP-10 rises 0.05% in January compared to 0.36% in December, says FGV

The General Price Index – 10 (IGP-10) rose 0.05% in January, after rising 0.36% in December, informed the Getulio Vargas Foundation (FGV). The result announced this Tuesday (17) was below the estimates of financial market analysts surveyed by the Broadcast projectionswho expected an increase of 0.20% to 0.44%, with a positive median of 0.34%.

As for the three indicators that make up the January IGP-10, wholesale prices measured by the IPA-10 dropped by 0.06%, compared to an increase of 0.31% in December. Consumer prices verified by the IPC-10 increased by 0.47% in January, after increasing by 0.58% in December. The INCC-10, which measures civil construction prices, rose 0.14% in January, after rising 0.36% in December.

The IGP-10 accumulated an increase of 4.27% in 12 months. The price collection period for the January indicator was from the 11th of December to the 10th of this month.

The 0.71% drop in the price of gasoline helped slow down consumer inflation measured by the January IGP-10. Within the Consumer Price Index (IPC-10), four of the eight expense classes registered lower rates of change: Transport (from 0.85% in December to 0.06% in January), Food (from 1.12 % to 0.67%), Housing (from 0.46% to 0.12%) and Miscellaneous Expenses (from 0.49% to 0.10%). The main contributions came from the items: gasoline (from 1.82% to -0.71%), vegetables (from 11.79% to 4.04%), residential electricity tariff (from 1.58% to – 0.53%) and banking services (from 0.76% to 0.00%).

In the opposite direction, the rates were higher in the groups Education, Reading and Recreation (from -0.45% to 1.13%), Communication (from 0.11% to 0.73%), Clothing (from 0.35 % to 0.87%) and Health and Personal Care (from 0.58% to 0.69%). The main influences came from the items: formal courses (from 0.00% to 2.49%), mobile phone tariff (from -0.10% to 0.92%), clothing accessories (from -1.13% to 1.51%) and hygiene and personal care items (from 0.51% to 0.71%).

Construction

The reduction in the cost of construction material also helped to cool down the sector’s inflation in January’s IGP-10, according to the FGV.

The National Construction Cost Index (INCC-10) rose from a high of 0.36% in December to a high of 0.14% this month. The Index that represents the cost of Materials, Equipment and Services went from a high of 0.28% in December to a fall of 0.04% in January. Expenses with Materials and Equipment had a decrease of 0.14% this month, while the costs of Services had an increase of 0.44%.

The index that represents the cost of labor rose from an increase of 0.44% in December to an increase of 0.34% in January.