The General Price Index-Internal Availability (IGP-DI) increased 1.25% in December, after registering a drop of 0.58% in the previous month, and ended 2021 with an increase of 17.74%, according to the Foundation Getulio Vargas (FGV) this Thursday.
The increase registered last year was milder than the 2020 advance, when the index had accumulated a gain of 23.08%.
The expectation in a Reuters survey was an advance of 1.34% in December%.
According to André Braz, coordinator of price indices, the December reading was mainly influenced by the 1.54% rise in the Broad Producer Price Index (IPA-DI), which had fallen by 1.16% in the previous month.
The index refers to the change in wholesale prices and accounts for 60% of the general indicator, and last year it accumulated an increase of 20.64%.
“The acceleration registered in the prices of iron ore (from -24.98% to 17.62%), cattle (from 2.60% to 8.33%) and coffee (from 8.02% to 9. 16%) contributed prominently to the acceleration of producer inflation, an index with the greatest influence on the IGP, offsetting the cooling of consumer inflation,” said Braz in a statement.
Among the groups that make up the IPA, Raw Materials stood out, which jumped 4.40% last month, leaving behind the 6.40% drop registered in November.
Consumers, on the other hand, saw relief from inflationary pressures in December, as the Consumer Price Index (IPC-DI) –which accounts for 30% of the IGP-DI– slowed its rise to 0.57% from 1 .08% in the previous month. In 2021 the IPC-DI rose 9.34%
It is worth mentioning the behavior of Transport, which reduced its increase to 0.28% in December, from 3.07% in November, reflecting a strong reduction in gasoline prices. Fuel fell by 0.36% last month, up from 7.44% in November.
The National Construction Cost Index (INCC) rose 0.35% in December, compared to 0.67% in the previous month, ending the year up 13.85%.
The IGP-DI is used as a reference for price corrections and contractual values. It is also directly used in the calculation of Gross Domestic Product (GDP) and national accounts in general.
Reference: CNN Brasil
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