IGP-M has 0.7% deflation in August
As a result, the index started to accumulate a high of 7.63% in the year and 8.59% in 12 months.
The General Price Index – Market (IGP-M) fell 0.7% in Augustafter having registered a high of 0.21% in July, informed this Tuesday (30) the Fundação Getulio Vargas (FGV).
As a result, the index started to accumulate a high of 7.63% in the year and 8.59% in 12 months – above the IPCA-15 in the year and below the 12-month preview of inflation.
In August 2021, the index had risen 0.66% and accumulated a high of 31.12% in 12 months.
“Fossil fuels – given the reduction in ICMS and prices at the refinery – continue to exert a significant influence on the results of the IPA and IPC, both with negative rates in August. In the producer index, the falls in the prices of gasoline (from 4.47% to -8.23%) and of Diesel (from 12.68% to -2.97%) helped to increase the decline in the index rate. On the consumer side, airline tickets (from -5.20% to -17.32%) and ethanol (from -9.41% to -9.90%) also contributed to the cooling of inflation”, says André Braz , coordinator of the Price Indices.
The IGP-M is known as ‘rent inflation’ because it serves as a parameter for the readjustment of various contracts, such as real estate leases. In addition to the variation in consumer prices, the index also tracks the cost of primary products, raw materials, wholesale prices and construction inputs.
Understand the composition of the index and what weighed the most
The IGP-M calculates producer, consumer and civil construction prices between the 21st of the previous month and the 20th of the reference month.
The indicator consists of 3 components:
- O Broad Producer Price Index (IPA)which has a weight of 60% in the composition of the IGP-M – the index fell 0.71% in August, after changing 0.21% in July. The main influence came from fuels for consumption (from 2.39% to -6.38%); fuels and lubricants for production (from 9.96% to -1.55%); iron ore (-11.98% to -5.76%); corn in grain (-5.00% to -1.54%); seed cotton (-14.02% to -4.43%), bovine items (4.43% to -2.01%), coffee beans (2.69% to -1.65%) and wheat in grain (2.31% to -4.99%).
- O Consumer Price Index (CPI)with a weight of 30% in the IGP-M – the index fell 1.18% in August, after falling 0.28% in July. The main contribution came from the Transport group (-2.42% to -4.84%), especially gasoline (-7.26% to -15.14%). Airfare (-5.20% to -17.32%), dairy products (11.16% to 6.45%), mobile phone tariff (-0.04% to -2.40%), footwear (0.94% to -0.17%) and electronic equipment (0.38% to -0.41%). On the other hand, hygiene and personal care items rose (-1.43% to 1.07%) and cigarettes (1.54% to 2.55%).
- O National Construction Cost Index (INCC)with a weight of 10% in the IGP-M – the index changed 0.33% in August, compared to 1.16% in July. The three components had the following variation: Materials and Equipment (0.62% to 0.03%), Services (0.49% to 0.68%) and Labor (1.76% to 0.54%) .