IGP-M varies 0.67% in initial results for January 2020

The General Price Index – Market (IGP-M) rose 0.67% in the first 10 days of January 2020. In the first 10 days of December, the rate was 1.83%.
Economics
13 January 2020
IGP-M varies 0.67% in initial results for January 2020

The General Price Index – Market (IGP-M), calculated by the FGV´s Brazilian Institute of Economics (FGV IBRE), rose 0.67% in the first 10 days of January 2020. In the first 10 days of December, the rate was 1.83%.

The Broad Producer Price Index (IPA) went up 0.86% in the first 10 days of January. In the same period of December, it rose 2.57%. Looking at different processing stages, the prices of Final Goods increased less intensely, going from 3.04% in December to 1.59% in January. The main driver of this movement was the Processed Foods subgroup, whose rate fell from 6.49% to 4.08%. The figure for Intermediate Goods went from 0.27% in the first 10 days of December to 1.04% in the same period of January. This increase was influenced by the Fuels and Lubricants for Production subgroup, whose rate climbed from 0.35% to 4.67%.

Inflation for Raw Materials went from 4.64% in the first 10 days of December to -0.13% in the same period of January. The following items contributed to the decline in this group: Beef (21.23% to -5.63%), Iron Ore (3.91% to -0.51%) and Soybeans (2.68% to -1.00%). On the other hand, inflation increased for Sugarcane (-0.25% to 1.75%), Poultry (0.15% to 1.72%) and Oranges (-3.49% to -0.99%).

The Consumer Price Index (IPC) rose 0.33% in the first 10 days of January, following a 0.59% increase the previous month. Five of the eight component spending groups of this index recorded lower figures, in particular Education, Literature and Recreation (0.67% to -0.94%). In this group, there were noteworthy results for Airline Tickets (14.47% to -9.58%).

Decreases in price variations were also recorded in the following groups: Food (1.24% to 1.03%), Miscellaneous Expenses (2.92% to 0.08%), Housing (0.06% to -0.29%) and Communication (0.34% to 0.13%). In these spending groups, the biggest influences came from Beef (10.35% to 3.29%), Lottery Tickets (23.33% to 0.00%), Residential Electricity Charges (0.29% to -1.69%) and Internet Charges (0.58% to 0.00%).

On the other hand, inflation picked up for the following groups: Transportation (0.42% to 1.12%), Health and Personal Care (0.16% to 0.31%) and Clothing (0.23% to 0.46%). In these groups, the following items saw notable results: Gasoline (1.30% to 3.29%), Hygiene and Personal Care Products (-0.23% to 0.27%) and Clothes (0.01% to 0.51%).

The Civil Construction Index (INCC) rose 0.20% in the first 10 days of January, compared to a 0.12% decline the previous month. INCC’s three components recorded the following rates of variation between the first 10 days of December and the same period of January: Materials and Equipment (-0.35% to 0.01%), Services (0.06% to 0.12%) and Manpower (0.00% to 0.35%).

The complete study is available here.

 

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