IGP-M rises 2.94% in March
The General Price Index – Market (IGP-M) rose 2.94% in March 2021, according to Fundação Getulio Vargas’ Brazilian Institute of Economics (FGV IBRE). As a result, the index is up 8.26% this year and 31.10% in the last 12 months. In March 2020, the indicator was up 1.24% in the year to date and up 6.81% in the previous 12 months.
“All IGP-M’s component indexes accelerated. In the producer price index, recent increases in raw material prices continued to influence the acceleration in intermediate goods (4.67% to 6.33%) and finished goods (1.25% to 2.50%). Higher fuel prices also contributed to the rise in producer and consumer inflation. In the construction sector, construction material prices accelerated again, boosted by higher prices of basic inputs,” says FGV IBRE’s price index coordinator, André Braz.
Broad Producer Price Index
The Broad Producer Price Index rose 3.56% in March, compared to 3.28% in February. Breaking down the results by processing stage, the Finished Goods group went up 2.50% in March. The previous month, it rose 1.25%. The main contribution to this result came from the Processed Food subgroup, whose rate went from -0.86% to 0.72% in this period. The Finished Goods (ex) group, which excludes the Fresh Food and Fuels for Consumption subgroups, increased 1.28% in March, compared to 0.75% in February.
The Intermediate Goods group went from 4.67% in February to 6.33% in March. The main reason for this movement was the Fuels and Lubricants for Production subgroup, whose rate went from 6.77% to 18.33%. The Intermediate Goods (ex) group, obtained by excluding the Fuels and Lubricants for Production subgroup, rose 4.65% in March, compared to 4.38% in February.
The Gross Raw Materials stage went up 2.11% in March, after rising 3.72% in February. The following items contributed to the decrease in this group’s rate: Beef (9.86% to 1.40%), Soybeans (5.41% to 1.93%) and Corn (6.14% to 2.66%). In the opposite direction, the highlights were Pork (-8.32% to 4.94%), Poultry (-0.05% to 4.14%) and Oranges (-5.29% to -2.18%).
Consumer Price Index
The Consumer Price Index rose 0.98% in March, compared to 0.35% in February. Four of the index’s eight spending classes registered increases in their rates of variation. The main contribution came from the Transport group (1.45% to 3.97%). In this spending class, it is worth mentioning the Gasoline item, whose rate went from 4.42% in February to 11.33% in March.
There were also increases in the rates for Housing (-0.29% to 0.53%), Health and Personal Care (0.18% to 0.41%) and Apparel (-0.33% to 0.18%). In these spending classes, the following items had notable results: Residential Electricity Charges (-3.03% to 0.31%), Hygiene and Personal Care Products (-0.42% to 0.61%) and Clothing Accessories (-1.78% to 1.34%).
On the other hand, Education, Reading and Recreation (0.78% to 0.02%), Food (0.18% to 0.10%), Communication (0.00% to -0.10%) and Miscellaneous Expenses (0.23% to 0.21%) recorded declines in their rates of variation. In these spending classes, the following items had noteworthy results: Formal Courses (2.41% to 0.00%), Vegetables (-1.77% to -3.70%), Telephony, Internet and Pay TV Packages (0.15% to -0.13%) and Religious and Funeral Services (0.44% to 0.08%).
Civil Construction Index
The Civil Construction Index rose 2.00% in March, compared to 1.07% the previous month. The index’s three component groups recorded the following rates of change between February and March: Materials and Equipment (2.39% to 4.44%), Services (1.05% to 0.69%) and Labor (0.03% to 0.28%).
The complete study is available here.