IGP-M: rent inflation slows to 0.66% in August and is below market expectations

The General Price Index – Market (IGP-M) decelerated from 0.78% in July to 0.66% in August, informed this Monday the Getulio Vargas Foundation (FGV).

Inflation accumulated by the index in 12 months dropped from 33.83% to 31.12% in the period. The result was below the market median determined by the Broadcast Projections, which indicated an increase of 0.78% for the index. The research floor was 0.45% and the ceiling 1.42%.

In openings, the Broad Producer Price Index (IPA-M) decelerated from 0.71% to 0.66%. The indicator accumulates an increase of 39.97% in the 12 months ended in August and 20.62% in 2021.

The Consumer Price Index (IPC-M) also cooled, from 0.83% in July to 0.75% in August. In 12 months, the index accumulates inflation of 8.60% and, in 2021, of 5.05%.

The National Construction Cost Index (INCC-M) decelerated from 1.24% to 0.56% in the period. the indicator accumulates an increase of 17.05% in 12 months and 11.37% in the year.

Three of the eight component expenditure classes of the CPI-M registered a decrease in their August rates. The main contribution came from Education, Reading and Recreation, which rose from 2.16% to 0.53%, driven by airfare (24.69% to 3.17%).

The groups Housing (1.66% to 1.05%) and Communication (0.00% to -0.11%) also presented relief in their rates of change. In them, the greatest weights of items were residential electricity tariff (5.87% to 3.26%) and telephone, internet and pay TV combo (0.02% to -0.26%).

In the opposite direction, five expense classes advanced compared to July, with emphasis on Food (0.59% to 1.17%). The greatest pressure came from the segment of vegetables and legumes, which changed from 5.13% deflation to 5.42% inflation.

Health and Personal Care (-0.07% to 0.42%), Miscellaneous Expenses (0.06% to 0.19%), Transport (0.73% to 0.76%) and Clothing (0.26% to 0.29%) also registered acceleration from July to August of the IPC-M. The biggest influences on these groups came from health plan and insurance (-1.27% to 0.42%), banking services (0.01% to 0.24%), ethanol (-1.26% to 0.70 %) and apparel accessories (-0.14% to 0.46%).

individual influences

According to FGV, the items that most contributed to the IPC-M relief in August were onions (-14.07% to -14.29%), rice (-1.79% to -1.89%) and papaya papaya (-0.68% to -6.52%). Telephone, internet and pay TV combo (0.02% to -0.26%) and garlic (-2.39% to -3.34%) complete the list.

The main individual high influences were residential electricity tariff (5.87% to 3.26%), gasoline (1.44% to 1.55%) and tomatoes (2.18% to 4.60%), followed by for cylinder gas (4.05% to 3.34%) and airfare (24.69% to 3.17%).

IPAs

Industrial producer prices had 1.25% deflation in the August IGP-M, after rising 1.50% in July, informed the Getulio Vargas Foundation (FGV). The group pulled the deceleration of the IPA-M in the period, from 0.71% to 0.66%.

In opposite movement, the agricultural IPA-M also reversed the sign and advanced 5.70% in the month, after registering 1.33% deflation in July.

The IPA-M accumulates inflation of 39.97% in the 12 months ended in August, with increases of 47.91% in agricultural producer prices and 37.0% in industrial producer prices.

In the openings by processing stages, the deceleration of the index at the margin was driven by the raw materials. Group prices fell 1.64% in August, after rising 0.09% in July.

The decline in the rate was driven by iron ore (2.70% to -15.32%), cattle (1.73% to -0.34%) and fresh milk (5.74% to 2.32% ). At the other end, soy beans (-5.92% to 7.78%), corn in grain (-4.58% to 10.97%) and coffee beans (0, 04% to 20.98%).

Final goods accelerated from 1.08% in July to 2.22% in August, driven by the subgroup of fresh foods (-1.14% to 8.28%). Intermediate goods also advanced, from 1.15% in July to 2.11% in August, pressured by materials and components for manufacturing (0.11% to 1.68%).

Gross raw materials accumulate inflation of 48.27% in 12 months. On this basis, the increase is 25.08% for final goods and 45.27% for intermediate goods.

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