Known as “rent inflation”, as it is used to readjust most contracts in the sector, the IGP-M (General Price Index – Market) rose 1.82% in January, after changing 0.87% in the previous month, informed the FGV (Fundação Getulio Vargas) this Friday (28).
The median of market expectations pointed to an increase of 1.98%.
As a result, the index accumulates a high of 16.91% in 12 months. In January 2021, the index had risen 2.58% and accumulated a high of 25.71% in 12 months.
According to the index coordinator, André Braz, producer inflation remains widespread. The specialist highlights the rise in the prices of investment goods, which rose 2.07% in the month, compared to 0.78% in December 2021.
Another highlight was the prices of materials and components for manufacturing, which had an advance of 1.33%, after rising 0.40% last month. Finally, Braz also mentions the ore that, driven by the rise in international prices, closed January with a rise of 18.26% and accounted for 52% of the IPA result.
It is worth mentioning that the IGP-M is composed of three sub-indices: the IPC-M (Consumer Price Index – Market), the IPA-M (Broad Producer Price Index – Market) and the INCC-M (National Construction Cost – Market).
IPA
The IPA (Broad Producer Price Index) rose 2.30% in January, after rising 0.95% in December. Within this group, the rate of the Final Goods group changed by 0.75% in January, compared to an increase of 0.53% in the previous month.
The main contribution to this result, according to FGV, came from the investment goods subgroup, whose rate changed from 0.78% to 2.07% in the same period.
The index for Finished Goods (ex), which excludes the subgroups of fresh food and fuel for consumption, changed by 0.90% in January, compared to 0.70% in the previous month.
The rate for the Intermediate Goods group changed from 1.02% in December to 1.05% in January, driven mainly by the subgroup materials and components for manufacturing, whose percentage went from 0.40% to 1.33%.
The Intermediate Goods (ex) index, obtained after excluding the subgroup fuels and lubricants for production, rose 1.26% in January, against 0.74% in December.
The stage of Gross Raw Materials rose 4.95% in January, compared to 1.22% in December. For this advance, FGV highlights some items as responsible: iron ore (-0.52% to 18.26%), soybeans in grain (-1.03% to 4.05%) and corn in grain (-2 .68% to 5.64%). In the opposite direction, the highlights are beef (11.69% to 1.94%), coffee beans (12.52% to 1.92%) and pork (3.20% to -12.39%) .
IPC
The CPI (Consumer Price Index) showed a deceleration from December to January, going from 0.84% to 0.42%. In this index, four of the eight components registered a drop in their rates in the period.
The main contribution to this movement came from the Transport group (1.26% to -0.17%), highlights FGV. “In this category of expense, it is worth mentioning the behavior of the gasoline item, whose rate went from 2.24% in December to -1.62% in January”, says the institution in the study.
Other groups highlighted by the drops were Housing (1.09% to 0.33%), Education, Reading and Recreation (1.80% to 0.94%) and Health and Personal Care (0.17% to 0.07% ).
Regarding this last expense category, the institution highlights: residential electricity tariff (3.11% to -0.69%), airfare (11.52% to -6.63%) and health plan and insurance (0 .16% to -0.29%)”.
On the side of the increases are the groups Food (0.54% to 1.15%), Clothing (0.61% to 1.17%), Communication (0.05% to 0.13%) and Miscellaneous Expenses ( 0.13% to 0.14%).
“In these expense categories, the following items stood out: vegetables (-3.07% to 4.44%), clothing (0.58% to 1.29%), telephony, internet and cable TV subscription (0.11% to 0.42%) and cigarettes (0.20% to 0.98%)”, says the study.
INCC
The INCC (National Construction Cost Index) changed 0.64% in January, compared to 0.30% in December.
“The three groups that make up the INCC recorded the following changes from December to January: Materials and Equipment (0.48% to 1.05%), Services (0.57% to 1.28%) and Labor ( 0.10% to 0.14%)”.
Reference: CNN Brasil
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