IGP-DI ends the year with a 7.10% hike

The Broad Producer Price Index (IPA) varied -0.82% in December, compared to -1.70% in November. In the analysis by processing stages, the rate of the Final Goods group varied 0.62% in December, on average, after dropping 1.01% in November.
Economics
09 January 2019
IGP-DI ends the year with a 7.10% hike

The General Price Index - Internal Availability (IGP-DI) stood at -0.45% in December, an increase compared to -1.14% recorded in the previous month. With this result, the index ends the year at a 7.10% high. In December 2017, the index had risen 0.74% and reached an accrued drop of -0.42% in 12 months.

The Broad Producer Price Index (IPA) varied -0.82% in December, compared to -1.70% in November. In the analysis by processing stages, the rate of the Final Goods group varied 0.62% in December, on average, after dropping 1.01% in November. The main reason behind such increase was the fuel for consumption subgroup, which shifted from -15.17% to -3.02%. The Final Goods index (ex), resulting from the exclusion of fresh foods and fuel for consumption, rose 0.48% in December, compared to 0.04% in November.

The Intermediate Goods group varied from -2.44% in November to -1.74% in December. The main reason behind such trend was the materials and components for manufacturing subgroup, which rose from -2.35% to -0.98%. The Intermediate Goods (ex) rate, not including the fuel and lubricants for production subgroup, dropped 0.55% in December, compared to a 1.57% drop in the previous month.

The Gross Raw Materials stage varied -1.38% in December. This rate had dropped 1.59% in November. The following items contributed to the milder drop in the group’s rate: soy (beans) (-5.75% to -3.03%), corn (grain) (-4.37% to 2.08%) and cattle (-0.42% to 1.80%). On the other hand, the highlights were iron ore (4.62% to -1.35%), fresh milk (-4.95% to -8.14%) and coffee (beans) (1.05% to -4.95%).

The Consumer Price Index (CPI) varied 0.29% in December, compared to -0.17% in November. 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 Housing group (-0.94% to 0.20%). A highlight of this expense class was household power bill, which went from -5.98% to -1.27%.

The Food (0.41% to 0.74%), Health and Personal Care (0.09% to 0.44%), Education, Reading and Recreation (0.40% to 0.83%), and Clothing (0.11% to 0.69%) groups also recorded increasing variation rates. The main drivers in these expense classes were dairy products (-3.34% to -2.11%), hygiene and personal care items (-1.14% to 0.60%), airfare (9.13% to 12.48%) and clothing (0.20% to 0.99%).

On the other hand, the Transport (-0.57% to -0.63%), Communication (0.18% to -0.01%) and Miscellaneous Expenses (0.16% to 0.13%) groups yielded lower rates. The main highlights in these expense classes were gasoline (-2.90% to -4.30%), landline phone and internet packages (0.78% to 0.00%) and postal fees (4.28% to 1.49%).

The core CPI recorded a rate of 0.36% in December, compared to 0.22% 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 0.09% (lower limit) and 22 recorded variations above 0.60% (upper limit). In December, the diffusion index, which measures the ratio of items with positive variation rates, was 64.20% – up 7.99 p.p. compared to 56.21% in November.

In December, the Civil Construction Index (INCC) recorded the same variation seen in the previous month (0.13%). Prices for Materials, Equipment and Services remained at 0.23%, compared to 0.29% in the previous month. The Manpower cost index varied 0.06% in December. The index did not vary in the previous month.

The complete study is available on the website.