Brazil IGP-M rises in first preliminary results for March
The General Market Price Index (IGP-M), calculated by FGV’s Brazilian Institute of Economics (IBRE), rose 0.60% in the first ten-day period of March. The index rose 0.16% in the same period of the previous month.
The Broad Producer Price Index (IPA) recorded a 0.83% increase in the first ten-day period in January. The index varied 0.05% in the same period in February. In the analysis based on processing stages, the prices of Finished Goods rose 0.43% in March, on average, after dropping 0.32% in February. The fresh foods subgroup was one of the drivers behind such increase, rising from -3.25% to 7.39%. Intermediate Goods showed a 0.44% increase, compared to 1.25% in the previous month. The Fuels and Lubricants subgroup was the main reason for such decrease, dropping from 1.54% to -1.93%.
The Gross Raw Materials index rose 1.80%, compared to -0.94% in the previous month. Some of the main drivers behind such increase in the group were iron ore (-2.41% to 4.15%), soybeans (grains) (-1.10% to 4.51%), and fresh milk (-3.78% to 4.89%). On the other hand, the items with negative variation included manioc (cassava) (6.91% to -3.98%), sugar cane (1.24% to 0.42%), and cotton (seed) (0.82% to -1.25%).
The Consumer Price Index (CPI) rose 0.17% in the first ten-day period of March, compared to 0.40% in the previous month. Seven of the eight expense categories that comprise the index recorded negative price variations, particularly the Education, Reading and Recreation group (1.42% to -0.34%). One of the highlights in this expense category was the formal courses item, which varied from 2.13% to 0.00%.
Other groups that also showed negative variations were Food (0.18% to -0.09%), Transport (1.02% to 0.75%), Health & Personal Care (0.61% to 0.42%), Clothing (0.53% to 0.04%), Miscellaneous Expenses (0.23% to 0.13%), and Communication (0.06% to -0.03%). The main influencing factors within these expense classes were Vegetables (4.66% to 0.32%), Gasoline (2.21% to 1.07%), Personal Care & Hygiene Items (0.30% to -0.34%), Clothing (0.54% to -0.15%), Notary Office (1.83% to 0.29%), and cell phone bill (0.00% to -0.68%).
On the other hand, only the Housing group (-0.18% to 0.14%) recorded a higher price variation rate. A highlight of this expense class is the household power bill, which fell from -2.33% to 0.33%.
The Civil Construction Index (INCC) rose 0.23% in the first ten days of March. This index rose 0.25% in the previous month. Prices for Materials, Equipment, and Services rose 0.50%, compared to 0.55% in the previous month. The Manpower cost index did not show any variation.
The complete results are available on the website.