IGP-M rises by 1.26% in March
The General Market Price Index – Market (IGP-M), developed by FGV’s Brazilian Institute of Economics (IBRE), increased by 1.26% in March, a percentage higher than that recorded in February, when it varied by 0.88%. With this result, the cumulative IGP-M increased by 2.16% during the year and 8.27% in the last 12 months. In March 2018, the index had risen by 0.64% in the month and accumulated a 0.20% increase in 12 months.
The Broad Producer Price Index (IPA) rose by 1.67% in March, after a 1.22% increase in February. In the analysis by processing stages, the rate of the Final Goods group varied by 1.93% in March, compared to 1.19% in the previous month. The main contribution to this result came from the Fuels for Consumption subgroup, whose variation rate increased from -0.04% to 9.11% over the same period. The Final Goods (ex) index, which excludes the Fresh Foods and Fuels for Consumption subgroups, rose by 0.06% in March, compared to a 0.12% decrease in the previous month.
The variation rate of the Intermediate Goods went from -0.35% in February to 0.87% in March. This movement was due mainly to the Materials and Components for Manufacturing subgroup, whose percentage went from -1.12% to -0.02%. The Intermediate Goods (ex) Index, obtained after excluding the Fuels and Lubricants for Production subgroup, varied by -0.03% in March, compared to -0.81% in February.
The Gross Raw Materials index slowed down from 3.23% in February to 2.33% in March. The following items contributed to the group’s rate slowdown: iron ore (11.98% to 2.94%), fresh milk (8.63% to 3.10%), and sugarcane (1.76% to -0.05%). Conversely, the items soybeans (grain) (-2.04% to 2.25%), poultry (0.32% to 7.66%), and cattle (-0.72% to 1.31%) have stood out.
The Consumer Producer Price Index (IPC) rose by 0.58% in March, compared to 0.26% in February. Five of the eight component expenditure classes of the index reported an increase in their variation rates. The main contribution came from the Transportation group (0.00% to 0.82%). In this expenditure class, it is worth noting the behavior of the item Gasoline, whose rate went from -2.98% to 1.30%.
The Food (0.65% to 1.09%), Clothing (-0.66% to 0.38%), Education, Reading and Recreation (-0.16% to 0.11%) and Health and Personal Care (0.29% to 0.45%) also reported an increase. The main influencers for the groups’ increase came from the following items: vegetables and legumes (-0.33% to 12.35%), clothing (-0.94% to 0.51%), musical concert (-7.51% to 3.56%), and hygiene and personal care items (-0.46% to 0.77%).
In contrast, the groups Miscellaneous Expenses (0.20% to -0.10%), Housing (0.37% to 0.31%) and Communication (0.24% to 0.21%) showed a decrease in their variation rates. In these expenditure classes, the main declines were noted in the items cigarettes (0.00% to -0.49%), residential electricity bill (1.01% to 0.80%), and residential telephone bill (-0.09% to -0.47%).
The Civil Construction Index (INCC) remained stable in March, repeating the rate of the previous month, which was 0.19%. The three component groups of the INCC reported the following changes in the period from February to March: Materials and Equipment (0.23% to 0.38%), Services (0.86% to 0.52%), and Workforce (0.05% to 0.00%).