The IGP-M (General Price Index – Market) changed 0.21% in July, compared to 0.59% in the previous month, informed the Brazilian Institute of Economics of Fundação Getulio Vargas (FGV Ibre), this Thursday (29). ).
The index is known as “rent inflation” because it is used to readjust most contracts in the sector.
With this result, the IGP-M accumulates an increase of 8.39% in the year and 10.08% in 12 months. In the same period last year, the index had risen 0.78% and accumulated a high of 33.83% in 12 months.
According to André Braz, coordinator of Ibre’s price indices, the drop in commodities and the reduction in ICMS on gasoline and electricity contributed to the slowdown in July.
“Prices of important commodities are falling, reflecting the risks of a less encouraging macroeconomic scenario. According to the producer index, there were important declines in the prices of iron ore (from -0.32% to -11.98%), corn (from -1.21% to -5.00%) and soybean ( from -0.80% to -2.05%)”, he highlighted.
“In terms of the consumer, the reduction in ICMS on electric energy (from -0.34% to -3.11%) and on gasoline (from -0.19% to -7.26%) significantly influenced the result of the CPI , which registered a drop of 0.28%. If it weren’t for the reduction in ICMS, the IPC would not have registered a negative rate”, he added.
Source: CNN Brasil
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