The National Construction Cost Index – M (INCC-M) stood at 1.16% in July, announced the FGV Ibre this Tuesday (26). The indicator was above the projection of LCA Consultorias, which foresaw a rise of 0.97% for the month.
The percentage is lower than in the previous month, when the index registered a rate of 2.81%. As a result, the index accumulates an increase of 8.44% in the year and 11.66% in 12 months.
In July 2021, the INCC-M had risen 1.24% in July and had accumulated a high of 17.35% in 12 months.
The index rate for materials, equipment and services changed from 1.4% in June to 0.6% this month, while the index for labor increased 1.76%, after rising 4.37% in the previous release. .
It is also worth noting that the INCC-M has the seasonality of salary adjustments for the class. As of August, the index should return to the level of 0.5%.
Categories
The INCC-M has two groups of highlights. The first of them is Materials, Equipment and Services, whose fee is divided into two parts.
The part corresponding to Materials and Equipment changed 0.62% in July, after increasing 1.58% in the previous month.
Three of the four component subgroups showed a decrease in their rates of change, especially materials for structure, whose rate went from 2.62% to 0.63%.
The variation relative to Services changed little, going from 0.5% to 0.49%. According to Ibre, it is worth noting the decline in the rate of ready meals at the workplace, which went from 0.46% to 0.29%.
Finally, the second group, referring to the Labor index, the index changed 1.76% in July, after rising 4.37% in June.
What is the INCC-M?
The National Construction Cost Index (INCC-M) is an economic indicator that captures the evolution of residential construction costs.
It makes it possible to monitor the evolution of material prices and the most relevant labor and service costs for civil construction.
The index covers seven Brazilian capitals: Belo Horizonte, Brasília, Porto Alegre, Recife, Salvador, Rio de Janeiro and São Paulo.
Of this total, only Porto Alegre presented an increase in its July variation rate, with all other capitals recording a decrease in the month.
IGP-M
It is worth noting that the INCC-M is responsible for 10% of the composition of the General Market Price Index (IGP-M), known as “rent inflation”, also calculated monthly by Ibre, from FGV.
Source: CNN Brasil
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