IGP-M varies 0.53% in mid-July

The General Price Index – Market (IGP-M), rose 0.53% in mid-July, down from 0.75% in mid-June.
Economics
22 July 2019
IGP-M varies 0.53% in mid-July

The General Price Index – Market (IGP-M), calculated by the Brazilian Institute of Economics (FGV IBRE), rose 0.53% in mid-July, down from 0.75% in mid-June.

The Broad Producer Price Index (IPA) went from 1.15% in mid-June to 0.62% in mid-July. Looking at different processing stages, prices of final goods increased 0.11% in July, after decreasing 0.75% in June. The biggest contributor to this result came from the unprocessed food subgroup, whose rate went from -6.82% to 1.58%.

The prices of intermediate goods fell 0.63% in mid-July, after rising 0.65% in June. The main highlight was the fuels and lubricants for production subgroup, whose result went from -0.55% to -4.30%.

Inflation in the raw materials group was 3.96% in June and 2.60% in July. The following items contributed to this decline: soybeans (5.68% to -0.66%), sugarcane (4.26% to -1.15%) and milk (0.99% to -5.41%). On the other hand, the following items went against this trend: iron ore goods (10.91% to 11.34%), beef (-1.17% to 1.23%) and oranges (-17.69% to -7.59%).

The Consumer Price Index (IPC) rose 0.10% in mid-July, after falling 0.05% in mid-June. Four of the eight component groups of this index accelerated. The main contribution came from the food group (-0.56% to 0.17%). In particular, the vegetables item went from -5.37% to 2.01%.

Inflation also picked up in the housing (0.17% to 0.42%), miscellaneous expenses (-0.30% to 0.14%) and communication (-0.11% to 0.02%) groups. In these categories of expenses, the main influences came from the following items: residential electricity prices (-0.43% to 1.56%), lottery tickets (-10.56% to 0.00%) and pay TV charges (-0.44% to -0.02%).

On the other hand, inflation decreased in the education, literature and recreation (1.01% to 0.20%), transportation (-0.48% to -0.63%), clothing (0.29% to -0.28%) and health and personal care (0.38% to 0.36%) groups. Within these groups, the biggest drops were experienced by the following items: music shows (1.68% to -2.13%), gasoline (-1.23% to -2.32%), clothes (0.33% to -0.26%) and general medications (0.36% to 0.00%).

The Civil Construction Index (INCC) rose from 0% in mid-June to 0.93% in mid-July. The index’s three component groups recorded the following variations in this period: materials and equipment (-0.06% to -0.19%), services (0.13% to 0.14%) and manpower (0.02% to 1.83%).