IGP-DI slows high in April with relief from fuels and commodities

The General Internal Availability Price Index (IGP-DI) rose 0.41% in April, compared to a rise of 2.37% in March, with the cooling of fuel prices and agricultural commodities accounting for the deceleration, the Foundation said. Getúlio Vargas (FGV) this Friday (6).

As a result, the index started to accumulate in the 12 months until April, a high of 13.53%.

The result for the month was below the expectation in a Reuters poll of a 0.88% advance.

The Broad Producer Price Index (IPA-DI), which accounts for 60% of the general indicator, rose 0.19% in April, well below the 2.37% rate of the previous month.

André Braz, coordinator of price indices, explained in a note that “the deceleration of diesel prices (from 16.86% to 6.87%) and gasoline (from 12.69% to 5.36%), in addition to the fall recorded in the prices of soybeans (from 3.48% to -8.02%), corn (from 1.49% to -9.82%) and iron ore (from 2.82% to -3, 90%), were fundamental for the sharp decline in the IPA rate”.

For the consumer, the pressure eased slightly, as the advance of the Consumer Price Index (CPI) — which accounts for 30% of the IGP-DI — weakened to 1.08% in the period, from 1.35% in March .

Consumer inflation “slowed down mainly thanks to the contribution of electricity (from 1.60% to -6.78%)”, Braz said, while “gasoline (from 5.08% to 3.19%), which rose least between March and April, also contributed to the cooling”.

The rise in the National Construction Cost Index (INCC) accelerated to 0.95% in April, from 0.86% in March.

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