General Price Index – Internal Availability varies 0.07% in January 2019

Five out of the eight expense categories comprising the index recorded increasing variation rates. The main driver behind such improvement in the CPI rate was the Education, Reading and Recreation group (0.83% to 3.13%). One of the highlights in this expense category was the formal courses item, which varied from 0.00% to 5.79%.
Economics
08 February 2019
General Price Index – Internal Availability varies 0.07% in January 2019

The General Price Index – Internal Availability (IGP-DI) stood at 0.07% in January, an increase compared to -0.45% recorded in the previous month. The index was up 6.56% year-over-year. In January 2018, the index had risen 0.58% and reached an accrued drop of 0.28% in 12 months.

The Broad Producer Price Index (IPA) varied -0.19% in January. This rate in December was -0.82%. In the analysis by processing stages, the Final Goods group varied 0.32% in January, on average, after climbing 0.62% in December. The main reason behind such variation was the processed foods subgroup, which varied from 1.11% to 0.00%. The Finished Goods (ex) index, resulting from the exclusion of fresh foods and fuel for consumption, rose 0.49% in January, compared to 0.48% in Dezember.

The Intermediate Goods group varied from -1.74% in December to -0.53% in January. The main reason for this change was the fuel and lubricants for production subgroup, which rose from -8.42% to -1.98%. The Intermediate Goods (ex) rate, not including the fuel and lubricants for production subgroup, dropped 0.29% in January, compared to a 0.55% drop in the previous month.

The Gross Raw Materials stage varied -0.38% in January. This rate had dropped 1.38% in December. The following items contributed to the slight improvement in the group’s rate: iron ore (-1.35% to 2.53%), fresh milk (-8.14% to -1.68%) and manioc (cassava) (-0.61% to 6.29%). In the opposite direction, it is worth mentioning soy (beans) (-3.03% to -5.21%), cattle (1.80% to -0.38%) and sugar cane (0.78% to -0.37%).

The Consumer Price Index (CPI) varied 0.57% in January, compared to 0.29% in the previous month. Five out of the eight expense categories comprising the index recorded increasing variation rates. The main driver behind such improvement in the CPI rate was the Education, Reading and Recreation group (0.83% to 3.13%). One of the highlights in this expense category was the formal courses item, which varied from 0.00% to 5.79%.

The Transport (-0.63% to 0.02%), Housing (0.20% to 0.43%), Communication (-0.01% to 0.20%), and Miscellaneous Expenses (0.13% to 0.30%) groups also recorded higher rates. The following items stand out in these expense categories: urban bus fare (-0.27% to 2.86%), household power bill (-1.27% to 0.47%), landline phone and internet packages (0.00% to 0.91%), and notary office (-0.01% to 3,33%).

On the other hand, the Clothing (0.69% to -0.64%), Health and Personal Care (0.44% to 0.27%), and Food (0.74% to 0.73%) groups showed decreasing variation rates. The main drivers in these categories were clothes (0.99% to -0.83%), hygiene and personal care items (0.60% to -0.26%) and herbs and vegetables (8.29% to -0.17%).

The core CPI recorded a rate of 0.30% in January, compared to 0.36% in the previous month. A total of 43 of the 85 items that make up the CPI were excluded from the core calculation. Out of this total, 21 showed rates below -0.01% (lower limit) and 22 recorded variations above 0.72% (upper limit). In January, the diffusion index, which measures the ratio of items with positive variation rates, was 66.57% – up 2.37 p.p. compared to 64.20% in December.

The Civil Construction Index (INCC) rose 0.49% in January, compared to 0.13% in December. Prices for Materials, Equipment and Services rose 0.60%, compared to 0.23% in the previous month. The Manpower cost category recorded an increase of 0.40% in January, compared to 0.06% in the previous month.

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