IGP-M drops 0.01% in the second preliminary results of January

The Intermediate Goods group fell 1.08% in January, compared to a drop of 2.74% in December. The main factor behind such variation was the manufacturing materials and components subgroup, varying from -2.48% to -0.50%.
Economics
21 January 2019
IGP-M drops 0.01% in the second preliminary results of January

The General Market Price Index (IGP-M) of FGV’s Brazilian Institute of Economics (IBRE) dropped 0.01% in the second ten-day period of January. The change was -1.15% in the same period in the previous month.

The Broad Producer Price Index (IPA) shifted from -1.74% in the second ten-day period of December to -0.26% in the same period of January. In the analysis based on processing stages, Finished Goods prices rose 0.59% in January, on average, after dropping 0.01% in December. The fuel for consumption subgroup was the main driver behind this trend, varying from -9.83% to -2.06%.

The Intermediate Goods group fell 1.08% in January, compared to a drop of 2.74% in December. The main factor behind such variation was the manufacturing materials and components subgroup, varying from -2.48% to -0.50%.

The Crude Raw Materials group recorded a softer drop, shifting from -2.51% in December to -0.24% in January. The following items contributed to the change in the group’s rate: iron ore (-4.78% to 2.91%), poultry (-4.39% to -1.38%) and fresh milk (-6.63% to -4.76%). The following items shifted in the opposite direction: sugar cane (0.34% to -0.61%), coffee (beans) (-1.63% to -4.72%) and pigs (4.01% to 0.15%).

The Consumer Price Index (CPI) varied 0.49% in the second ten-day period of January, compared to -0.05% in the same period of the previous month. Six of the eight expense categories covered by the index recorded increases in their variations. Transport was the main contributor (-1.09% to -0.06%). Within this expense category, it is important to highlight the gasoline item, which rose from -5.50% to -1.41%.

The Food (0.25% to 0.86%), Housing (-0.21% to 0.34%), Health and Personal Care (0.06% to 0.50%), Education, Reading and Recreation (1.13% to 1.45%) and Clothing (0.09% to 0.10%) groups also recorded increasing variation rates. The main drivers in these expense classes were dairy products (-2.78% to -0.16%), household power bill (-2.11% to -0.46%), hygiene and personal care items (-1.37% to 0.99%), formal courses (0.00% to 1.97%) and clothes (0.08% to 0.21%).

On the other hand, the Miscellaneous Expenses (0.24% to 0.22%) and Communication (0.15% to 0.07%) groups yielded lower rates. The main highlights in these expense classes were postal fees (3.49% to 0.00%) and landline phone and internet packages (0.63% to 0.37%).

The Civil Construction Index (INCC) rose 0.38% in the second ten days of January. This index rose 0.10% in the previous month. The Materials, Equipment and Services index varied 0.32% in the second ten days of January, compared to 0.21% in the same period of the previous month. The Manpower cost category recorded an increase of 0.43% in January. The index did not vary in the previous month.

The complete study is available on the website.