The IGP-M (General Price Index – Market) dropped 0.91% in the second preview of September, after registering a decline of 0.57% in the same period in August, informed the Brazilian Institute of Economics of Fundação Getulio Vargas (Ibre- FGV) this Tuesday (20).
As a result, the rate accumulated in 12 months went from 8.73% to 8.29%.
The index is known as “rent inflation” for being used to readjust a large part of contracts in the sector.
2 out of 3 components have dropped
Two of the three components of the indicator registered a decline in the period.
The IGP-M is composed of the weighting of three other indices: Broad Producer Price Index (IPA), Consumer Price Index (IPC) and National Construction Cost Index (INCC).
O IPA-M increased deflation, from a fall of 0.50% in the second preview of August to a decline of 1.22% in the second measurement of this month.
The largest contributions to this sub-index came from the fuels for consumption subgroup, whose rate went from -5.30% to -6.90%, and from the fuels and lubricants for production subgroup, whose rate went from -0.42% to -5.59%.
O IPC-M from a 1.43% decline in August to a 0.12% drop in September.
Six of the eight classes of expense that make up the index registered an increase in their rates of change, with emphasis on the Education, Reading and Recreation group (-4.46% to 3.85%). In this expense category, the institute highlights the behavior of air tickets, whose rate went from -24.91% to 23.85%.
Increases were also recorded in the rates of change in the Transport groups (-5.63% to -2.77%), Housing (-0.13% to 0.12%), Clothing (0.47% to 0.88% ), Communication (-0.68% to -0.57%) and Health and Personal Care (0.60% to 0.68%).
In these expense categories, the main influences came from the following items: gasoline (-17.43% to -9.19%), residential electricity tariff (-2.23% to -0.87%), footwear (-0 .14% to 0.70%), mobile phone tariff (-2.23% to -0.44%) and toiletries and personal care (0.85% to 1.17%).
On the side of falls, the highlights are the Food (0.43% to -0.36%) and Miscellaneous Expenses (0.32% to 0.07%) groups. In these expense categories, the main influences came from the following items: dairy products (6.31% to -3.01%) and cigarettes (2.15% to 0.86%), says Ibre.
already the INCC-M showed deceleration, despite remaining at a positive level, from 0.54% to 0.07%.
The three groups that make up the INCC showed the following variations from the second ten-day period of August to the second ten-day period of September: Materials and Equipment (0.26% to -0.17%), Services (0.72% to 0.44 %) and Labor (0.75% to 0.22%).
*Posted by Ligia Tuon
Source: CNN Brasil
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