IGP-10 drops 0,26% in January 2019

The General Price Index – 10 (IGP-10) dropped 0.26% in January, following a 1.23% fall in December. This brings the index to an accrued high of 6.80% in 12 months. The index rose 0.79% in January 2018, reaching an accrued drop of 0.51% in 12 months. The Broad Producer Price Index (IPA) varied -0.59% in January, compared to -1.83% in December. In the analysis based on processing stages, Finished Goods prices rose 0.57% in January, on average, compared to -0.68% in December. The fuel for consumption subgroup was the main driver behind this trend, varying from -14.07% to -1.15%. The Final Goods (ex) category, which excludes the fresh foods and fuel for consumption subgroups, varied 0.46% in January, compared to 0.15% in the previous month. The Intermediate Goods group varied from -2.75% in December to -1.55% in January. The manufacturing materials and components subgroup accounted for most of this trend, rising from -2.51% to -0.56%. The Intermediate Goods (ex) rate, not including the fuel and lubricants for production subgroup, varied -0.29% in January, compared to -1.64% in the previous month. The Gross Raw Materials group dropped 0.78% in January, following a 2.02% fall in December. The following items contributed to the slight improvement in the group’s rate: soy (beans) (-4.78% to -3.22%), poultry (-6.69% to -1.80%) and iron ore (0.22% to 1.51%). On the downside, the most relevant variations occurred in coffee (beans) (-1.58% to -5.73%), sugar cane (0.49% to -0.46%) and pork (3.98% to 0.73%). The Consumer Price Index (CPI) rose 0.45% in January, compared to a 0.09% drop in December. Five of the index’s expense categories recorded higher variations, particularly the Housing group (-0.53% to 0.27%). A highlight in this expense class is the household power bill, which recorded a 0.83% drop in January, after falling 4.19% in December. The Transport (-1.02% to -0.22%), Food (0.41% to 0.91%), Health and Personal Care (0.05% to 0.52%), and Education, Reading and Recreation (0.95% to 1.37%) groups also recorded increasing variation rates. The main drivers behind such trend were: gasoline (-4.69% to -2.58%), dairy products (-3.49% to -0.62%), personal care and hygiene items (-1.26% to 1.08%), and formal courses (0.00% to 1.97%). On the other hand, the Clothing (0.23% to 0.06%), Communication (0.09% to 0.05%), and Miscellaneous Expenses (0.27% to 0.16%) groups yielded lower rates. The main drivers in these expense classes were clothing accessories (1.22% to -0.69%), landline phone and internet packages (0.38% to 0.25%), and postal fees (5.43% to 0.00%). The Civil Construction Index (INCC) rose 0.29% in January, compared to 0.12% in December. The index for Materials, Equipment and Services varied 0.33%, compared to 0.26% in the previous month. The Manpower cost index varied 0.25% in January. This index did not show any variation in the previous month. The complete study is available on the website.