IGP-M rises 1.82% in January 2022

THE General Price Index – Market (IGP-M) rose 1.82% in January, after changing 0.87% in the previous month. With this 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.

“Producer inflation remains widespread. The prices of investment goods rose 2.07%, up from 0.78% in December 2021. Prices of materials and components for manufacturing advanced to 1.33%, after rising 0.40% last month. Finally, ore, driven by the rise in international prices, closed January with a rise of 18.26% and accounted for 52% of the IPA result”, says André Braz, Coordinator of Price Indexes.

– See also: FGV launches Residential Rent Variation Index (IVAR).

Broad Producer Price Index (IPA)

THE Broad Producer Price Index (IPA) rose 2.30% in January, after rising 0.95% in December. In the analysis by stages of processing, the rate of the Final Goods group changed by 0.75% in January. In the previous month, the group rate had been 0.53%. The main contribution to this result came from the investment goods subgroup, whose rate changed from 0.78% to 2.07% in the same period. The Index on Finished Goods (ex), which excludes the food subgroups in natura and fuels for consumption, changed 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. The main responsible for this movement was the subgroup materials and components for manufacturing, whose percentage went from 0.40% to 1.33%. The Intermediate Goods index (ex), 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 registered an increase of 4.95% in January, compared to 1.22% in December. The following items contributed to the increase in the rate of the group: 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%) .

Consumer Price Index (CPI)

THE Consumer Price Index (CPI) changed 0.42% in January, compared to 0.84% ​​in December. Four of the eight expense classes that make up the index registered a decrease in their rates of change. The main contribution came from the Transport group (1.26% to -0.17%). In this expense category, it is worth mentioning the behavior of the gasoline item, whose rate changed from 2.24% in December to -1.62% in January.

The 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%). In these expense classes, it is worth mentioning the following items: 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 other hand, 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%) registered an increase in their rates of change. In these expense categories, the following items stood out: vegetables (-3.07% to 4.44%), clothing (0.58% to 1.29%), telephony, internet and pay-TV combo (0.11% to 0.42%) and cigarettes (0.20% to 0.98%).

National Construction Cost Index (INCC)

THE National Construction Cost Index (INCC) changed 0.64% in January, compared to 0.30% in December. The three groups that make up the INCC registered 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%).

The complete study is available on the site.

Access supplementary material.

What is the IGP-M?

THE General Price Index – Market (IGP-M) is released monthly by the Brazilian Institute of Economics of Fundação Getulio Vargas (FGV IBRE). The indicator was conceived in the late 1940s to be a comprehensive measure of price movement, which encompassed not only different activities but also different stages of the production process. Thus, the IGP is a monthly indicator of the country’s level of economic activity, encompassing its main sectors.

The IGP has three versions with chained price collection: the IGP-10 (based on prices calculated from the 11th of the month prior to the 10th of the collection month), IGP-DI (from 1 to 30) and the most popular of them, the General Price Index – Market, or simply IGP-M, which gathers information on the price variation from the 21st of the month prior to the 20th of the collection month.

The IGP-M is widely used in the parametric formula for adjusting public tariffs (energy and telephony), in rental contracts and in service provision contracts.

2022 Disclosure Calendar:

  • – January: 01/28/2022
  • – February: 02/25/2022
  • – March: 03/30/2022
  • – April: 04/28/2022

The full calendar will be released soon.

Results from previous years:

How the IGP-M is calculated?

The calculation of IGP-M, as well as the other two indicators (IGP-10 and IGP-DI), takes into account the change in prices of goods and services, as well as raw materials used in agricultural, industrial and civil construction production. Thus, the result of the IGP-M is the weighted arithmetic average of producer (IPA), consumer (IPC) and civil construction (INCC) inflation.

  • Broad Producer Price Index (IPA);
  • Consumer Price Index (CPI);
  • National Construction Cost Index (INCC).

The weights of each of the component indices correspond to shares of gross domestic expenditure, calculated on the basis of the National Accounts – resulting in the following distribution:

  • – 60% for the IPA;
  • – 30% for the CPI;
  • – 10% for the INCC;

In this context, the IPA is the indicator that monitors the variation of prices perceived by producers, while the CPI follows the behavior of prices that directly impact the final consumer. Finally, the INCC presents the costs for civil construction, in an analysis that takes into account the variation in prices of construction materials and the cost of specialized labor.

How is the IGP-M used?

THE IGP-M is one of the component indices of parametric formulas used by telephone and electricity companies, partially accounting for the tariff readjustments of these segments. The General Price Index – Market is also used as the index of service provider contracts from different categories, such as education and health plans. In addition, the IGP-M became popular because it is widely used as a reference for the real estate sector, for the adjustment of rental contracts.

Due to its regular history of disclosure since the 1940s, the IGP-M is also cited in several public-private contracts of the most varied segments. Some of its components, such as the Broad Producer Price Index (IPA), also serve as a reference for price adjustments.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

Amazon to close bookstores and other physical stores | Technology

Amazon said on Wednesday it plans to close all 68 brick-and-mortar bookstores, kiosks and toy …