IGP-DI rises 2.34% in July
The General Price Index – Internal Availability (IGP-DI) increased 2.34% in July, after going up 1.60% in June. As a result, the indicator has risen 6.98% so far this year and 10.37% in the last 12 months. In July 2019, IGP-DI fell 0.01% and it had gone up 5.56% in the previous 12 months.
“Last month, the main highlights were increases in the Broad Producer Price Index (IPA) and Civil Construction Index (INCC). The prices of raw materials went up 6.53%, driven by a 9.27% increase in iron ore. Construction prices also rose, including materials and equipment (1.12%) and labor (1.37%),” says André Braz, FGV’s price index coordinator.
Broad Producer Price Index (IPA)
The Broad Producer Price Index (IPA) increased 3.14% in July, after going up 2.22% in June. Breaking down the results by processing stage, the Finished Goods group went from 1.78% in June to 0.52% in July. The main reason for this reduction was the Fresh Food subgroup, whose rate fell from -3.63% to -13.78%. The Finished Goods (ex) category, which excludes fresh fuels and fuels for consumption, rose 1.37% in July, compared to 1.31% in June.
The Intermediate Goods group’s rate went from 2.75% in June to 2.27% in July. The main driver for this decline was the Materials and Components for Manufacturing subgroup, whose result fell from 2.28% to 1.13%. The Intermediate Goods (ex) index, calculated by excluding fuels and lubricants for production, changed 1.00% in July, compared to 1.71% the previous month.
The Gross Raw Materials stage rose 6.53% in July, up from 2.16% in June. The following items contributed to the increase in this group’s rate: soybeans (1.21% to 8.87%), iron ore (3.93% to 9.27%) and corn (-3.68% to 3.44%). Conversely, sugarcane fell from 1.07% to -0.32%, poultry fell from 8.89% to 5.72% and cotton fell from 3.09% to -0.70%.
Consumer Price Index (CPI)
The Consumer Price Index (CPI) rose 0.49% in July, after changing 0.36% in June. Four of the eight spending classes that make up the index saw growth in their rates of change: Housing (0.00% to 0.79%), Health and Personal Care (0.18% to 0.58%), Transport (1.05% to 1.22%) and Miscellaneous Expenses (0.19% to 0.22%). In these spending classes, the following items had notable results: Residential Electricity Charges (-1.17% to 2.32%), Hygiene and Personal Care Products (-0.72% to 0.55%), Gasoline (3.28% to 3.67%) and Cigarettes (-0.49% to 0.42%).
In contrast, the following groups recorded declines in their rates of change: Food (0.57% to 0.13%), Apparel (0.08% to -0.45%), Education, Reading and Recreation (-0.40% to -0.60%) and Communication (0.88% to 0.54%). These spending classes were influenced by the following items: Vegetables (-2.66% to -11.90%), Clothes (0.14% to -0.59%), Formal Courses (-0.89% to -1.54%), and Phone, Internet and Pay TV Packages (2.00% to 1.10%).
Core CPI and Diffusion Index
Core CPI was 0.26% in July, compared to 0.19% the previous month. Of CPI’s 85 component items, 42 were excluded to calculate this core number. Sixteen of them recorded rates below the lower cut-off point, -0.06%, while 26 recorded variations of more than 0.57%, the upper cut-off point. In July, the Diffusion Index, which measures the proportion of items with a positive rate of change, was unchanged from June, at 60.65%.
Civil Construction Index (INCC)
The Civil Construction Index (INCC) rose 1.17% in July, compared to 0.34% the previous month. INCC’s three component groups recorded the following variations between June and July: Materials and Equipment (0.87% to 1.12%), Services (0.23% to 0.22%) and Labor (0.00% to 1.37%).
The complete study is available here.