“Rental inflation”: IGP-M slows to 1.74% in March; in 12 months, the increase is 14.77%

Known as “rent inflation” — as it is used to readjust most of the sector’s contracts — the IGP-M (General Price Index – Market) rose 1.74% in March, compared to 1.83% in the previous month, he said. the FGV (Fundação Getulio Vargas) this Wednesday (30).

The market expectation was around a high of 1.4%.

In the year, the index accumulates a high of 5.49% and, in 12 months, of 14.77%. The index shows a deceleration both in the monthly result and in relation to the one registered a year ago. In March 2021, the index had risen 2.94% and accumulated a high of 31.10% in 12 months.

Despite the slowdown, the price of fuels, readjusted on March 11 by Petrobras, are already beginning to influence the results of inflation for producers and consumers, highlights the coordinator of price indices, André Braz.

“Diesel prices advanced to 8.89% for the producer and the price of gasoline rose 1.36% for consumers. The prices of wheat (from 1.69% to 4.90%), of wheat flour (from 2.68% to 6.25%) and of industrialized breads and cakes (from 1.11% to 1.20% ) also began to register acceleration in the producer index”, he says in a note.

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). All three were discharged, but only the IPA decelerated from one month to another.

IPA

the IPA rose 2.07% in March, up from 2.36% in February.

In the analysis by stages of processing, the rate of the group Final Goods changed by 2.75% in March. In the previous month, the group rate had been 1.21%.

The main contribution to this result came from the processed foods subgroup, whose rate changed from -0.08% to 2.49% in the same period. The index for Finished Goods (ex), which excludes the subgroups in natura food and fuel for consumption, changed 1.56% in March, compared to 0.69% in the previous month.

The rate for the Intermediate Goods group changed from 1.50% in February to 2.06% in March. The main responsible for this movement was the subgroup fuels and lubricants for production, whose percentage went from 5.40% to 8.02%. The Intermediate Goods index (ex), obtained after excluding the subgroup fuels and lubricants for production, rose 1.02% in March, after having changed 0.85% in February.

The stage of Gross Raw Materials recorded an increase of 1.53% in March, against 4.16% in February. The following items contributed to the decrease in the rate of the group: iron ore (5.49% to -1.21%), corn in grain (7.92% to 2.48%) and coffee beans (2.26 % to -6.65%). In the opposite direction, pork items (-11.06% to 10.05%), in natura milk (-0.65% to 3.30%) and paddy rice (2.10% to 10, 60%).

CPI

The CPI (Consumer Price Index) changed 0.86% in March, compared to 0.33% in February. Seven of the eight classes of expense components of the index registered an increase in their rates of change. The main contribution came from the Transport group (0.26% to 1.15%). In this expense category, it is worth mentioning the behavior of the gasoline item, whose rate changed from -0.89% in February to 1.36% in March.

The Food (1.08% to 1.73%), Housing (0.13% to 0.75%), Education, Reading and Recreation (-0.10% to 0. 44%), Clothing (0.20% to 0.91%), Health and Personal Care (0.05% to 0.17%) and Miscellaneous Expenses (0.16% to 0.26%). In these expense categories, it is worth mentioning the following items: vegetables (7.76% to 13.77%), residential electricity tariff (-1.10% to 0.67%), airfare (-7.43 % to 1.73%), clothing (0.32% to 0.92%), medicines in general (0.07% to 0.26%) and banking services (0.10% to 0.20%).

On the other hand, the Communication group (0.38% to -0.12%) registered a decrease in its rate of change. In this expense category, the highlight came from the telephony, internet and pay-TV combo item (0.59% to -0.10%).

INCC

The INCC (National Construction Cost Index) changed 0.73% in March, compared to 0.48% in February. The three groups that make up the INCC recorded the following changes from February to March: Materials and Equipment (0.56% to 0.29%), Services (1.69% to 0.79%) and Labor (0 .19% to 1.12%).

Source: CNN Brasil

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