The General Price Index – Market (IGP-M) rose 0.66% in August, according to data released this Monday (30) by the Getúlio Vargas Foundation. With this, the index accumulated in the last 12 months, which serves as a reference for the readjustments of rental contracts, was 31.12%.
For those who will renew the contract in September, an adjustment of this magnitude can be prohibitive and represent the saga for a new place to live. However, according to the Regional Council of Realtors (Creci-MS), the reality of Mato Grosso do Sul has been a little different and based on common sense between tenants and tenants.
“Since the beginning of the pandemic, we have encouraged negotiations between the parties when it comes to renewing contracts. When the IGP-M ‘exploded’, we only reinforced this logic”, explains the president of Creci, Eli Rodrigues.
According to the institution, assessments are being carried out on a case-by-case basis, but in the majority of cases, far from the IGP-M. “If the rent has a very outdated price, a higher readjustment is usually negotiated, if not, we encourage a readjustment below the Index”, reinforces Eli.
In August 2020, the index had risen 2.74% and accumulated an increase of 13.02% in 12 months, much lower than the accumulated in the last 12 months, and even lower than that of 2021, which was 16, 75%.
What is IGP-M?
The General Price Index – Market (IGP-M) is released monthly by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV IBRE). The indicator was conceived in the late 1940s to be a comprehensive measure of price movement, encompassing not only different activities but also different stages of the production process.