The General Market Price Index (IGP-M), calculated by FGV’s Brazilian Institute of Economics (IBRE), varied 0.51% in July, compared to 1.87% in the previous month. With this result, the index accrues a 5.92% high in the year and 8.24% in 12 months. In July 2017, the index had fallen 0.72% and had accrued a decrease of 1.66% in 12 months.

The Broad Producer Price Index (IPA) fell from 2.33% in June to 0.50% in July. In the analysis by processing stages, the rate of the Final Goods group varied -0.15% in July, compared to 2.58% in the previous month. The main contribution to this result came from the fresh foods subgroup, which varied from 8.19% to -11.55% over the same period. The Final Goods (ex) category, which excludes the fresh foods and fuels subgroups for consumption, rose 0.99% in July, compared to 1.84% in the previous month.

The Intermediate Goods group fell from 2.42% in June to 2.11% in July. The main reason behind such variation was the supplies subgroup, which shifted from 4.72% to 2.35%. The Intermediate Goods (ex) rate, excluding fuel and lubricants for production from the subgroup, rose 2.15% in July, compared to 2.52% in June.

The Gross Raw Materials category fell 0.70% in July. In June, the index had recorded an increase of 1.92%. The following items contributed to the drop in the group’s rate: corn (grain) (3.70% to -9.53%), poultry (21.22% to 8.12%) and iron ore (-0.06% to -1.50%). The following items varied in the opposite direction: fresh milk (3.24% to 7.36%), cattle (-0.64% to 1.18%) and rice (paddy) (2.54% to 4.69%).

The Consumer Price Index (CPI) varied 0.44% in July, compared to 1.09% in June. Six out of eight expense classes that make up the index recorded decreasing variation rates. The Food group was the main contributing factor (1.55% to -0.19%). The herbs and vegetables item was the highlight in this expense category, which varied from 10.21% to -21.45%.

Transport (1.43% to 0.28%), Clothing (0.81% to -0.84%), Health and Personal Care (0.52% to 0.27%), Housing (1.45% to 1.37%) and Miscellaneous Expenses (0.08% to 0.07%) also recorded decreasing variation rates. The following items were the key influences: gasoline (5.53% to -0.43%), clothing (0.84% to -1.15%), physician, dentist and others (0.91% to 0.68%), cleaning supplies (2.23% to 0.45%) and pet food (0.33% to 0.03%).

On the other hand, the Education, Reading and Recreation (-0.12% to 1.07%) and Communication (0.18% to 0.35%) groups yielded higher variation rates. In these classes, the following items had the greatest increases: airfare (-3.76% to 20.15%) and mobile phone rate (0.30% to 0.75%).

The Civil Construction Index (INCC) rose 0.72% in July, compared to 0.76% in June. Prices for Materials, Equipment and Services remained at 0.97%, compared to 0.62% in the previous month. The Manpower cost index rose 0.51%, compared to 0.88% in the previous month.

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