Brazil’s IGP-M advances in the last month of 2016

The General Market Price Index (IGP-M) varied 0.54% in December. In November, the index varied -0.03%. A variation of 0.49% was recorded in December 2015. The accrued variation from January to December 2016 is 7.17%. In the same period of 2015, the IGP-M recorded a 10.54% increase. The IGP-M is calculated by FGV’s Brazilian Institute of Economics (IBRE) based on prices surveyed from the 21st day of the previous month to the 20th day of the current month, comprising the following indicators: Broad Producer Price Index (IPA), Consumer Price Index (CPI), and National Construction Cost Index (INCC).

The Broad Producer Price Index (IPA) recorded a variation rate of 0.69%. In the previous month, the rate was -0.16%. The biggest contribution came from the Final Goods category, which varied -0.26% in December. In November, this group of products recorded a variation of -0.82%.

The Consumer Price Index (CPI) recorded a variation of 0.20% in December, compared to 0.26% in November. Four out of eight expense classes that make up the index recorded decreasing variation rates. The highest variation was recorded in the Housing group (0.26% to -0.62%).

The National Construction Cost Index (INCC) recorded a variation rate of 0.36% in December. In the previous month, the index varied 0.17%. The greatest variation was recorded in the Materials, Equipment, and Services category, up 0.15%. In the previous month, the rate was -0.05%. The Manpower cost category recorded an increase of 0.55%. This group recorded a variation of 0.36% in the previous month.

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