IGP-DI accuses oil soaring and accelerates high to 2.37% in March, says FGV

The General Price Index – Domestic Availability (IGP-DI) rose 2.37% in March, compared to a 1.50% rise in February, with the surge in oil derivatives increasing pressure on both wholesale and retail, informed the Fundação Getulio Vargas (FGV) this Wednesday (6).

In 12 months until March, the increase is 15.57%.

The result for the month was above expectations in a Reuters poll of 2.17%.

The Broad Producer Price Index (IPA-DI), which accounts for 60% of the general indicator, rose 2.80% in March, up 1.94% in the previous month.

The acceleration of wholesale prices was “strongly influenced by petroleum derivatives, whose highlights were diesel (2.70% to 16.86%), gasoline (1.71% to 12.69%) and fertilizers (-5 21% to 7.97%), which together accounted for 30% of the IPA result”, said André Braz, coordinator of price indices, in a note.

The Consumer Price Index (CPI) —which accounts for 30% of the IGP-DI— also showed greater pressure, as the advance accelerated to 1.35% in the period, from 0.28% in February.

In March, the Transport group led the rise in retail with a jump of 2.51%, a strong acceleration in relation to the positive variation of 0.07% registered in the previous month.

Gasoline was the highlight, with a gain of 5.08%, abandoning the 1.35% drop seen in February.

FGV had already warned in the February reading of the IGP-DI that prices of various oil derivatives could show significant increases throughout March, after fears of supply restriction resulting from the invasion of Ukraine by Russia boosted commodity prices in the whole world.

This led Petrobras to adjust fuel prices at its refineries last month.

The National Construction Cost Index (INCC) rose 0.86% in March, from 0.38% in February.

The IGP-DI calculates producer, consumer and civil construction prices between the 1st and the last day of the reference month.