The IGP-M recorded an increase in the month of July. Understand how it is formed and see the history of the 12-month period
Estimated reading time: 3 minutes
The IGP-M (General Price Index – Market) rose 0.21% in July. The percentage was below estimates. Last month, the increase was 0.59%. The value was also lower compared to the same period last year, in May 2021, the index reached 0.78%.
The responsible for the calculation is the Brazilian Institute of Economics (Ibre). The survey considers producer, consumer and civil construction prices between the 21st and 20th of each month.
The IGP-M is used as a basis for adjustments in property rental contracts, which is why it is known as “rent inflation”. In 12 months, the index accumulates a high of 8.39%.
How is the IGP-M that defines rent inflation formed?
To establish the IGP-M, three sub-indices are calculated: IPA-M (Broad Producer Price Index – Market), IPC-M (Consumer Price Index – Market) and INCC-M (National Construction Cost Index – Marketplace).
The IPA-M measures the prices of wholesale products, from both agribusiness and domestic industry. That is, this indicator evaluates prices before the products reach the final consumer.
It corresponds to 60% of the composition of the IGP-M.
The IPC-M is responsible for analyzing consumption in the areas of health, housing, education, leisure, clothing, transport, among others.
It corresponds to 30% of the composition of the IGP-M.
The INCC-M calculates the fluctuation in the cost of products used in housing construction and the cost of skilled labor in this sector.
Corresponds to 10% of the IGP-M composition.
Thus, the IGP-M is the indicator that considers prices in the civil construction, agriculture, housing services, retail and industry sectors.
Check the values of the IGP-M in the period of 12 months.
- June/2021: 0.60%;
- July/2021: 0.78%;
- August/2021: 0.66%;
- September/2021: – 0.64%;
- October/2021: 0.64%;
- November/2021: 0.02%;
- December/2021: 0.87%;
- January/2022: 1.82%;
- February/2022: 1.83%;
- March/2022: 1.74%;
- April/2022: 1.41%;
- May/2022: 0.52%;
- June/2022: 0.59%.
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