The General Price Index - 10 (IGP-10) dropped 1.23% in December, following a 0.16% dip in November. With this result, the index accumulates a 7.92% high in the year. The index had risen 0.90% in December 2017, accumulating a 0.42% drop in 12 months.

The Broad Producer Price Index (IPA) slowed down from -0.37% in November to -1.83% in December. In the analysis based on processing stages, Finished Goods prices varied -0.68% in December, on average, compared to 0.03% in November. The fuel for consumption subgroup was the main driver behind this trend, varying from -7.62% to -14.07%. The Final Goods (ex) category, which excludes the fresh foods and fuel for consumption subgroups, varied 0.15% in December, compared to 0.51% in the previous month.

The Intermediate Goods group varied from 0.30% in November to -2.75% in December. The manufacturing materials and components subgroup accounted for most of this trend, recording a variation of 0.92% to -2.51%. The Intermediate Goods (ex) rate, not including the fuel and lubricants for production subgroup, varied -1.64% in December, compared to 0.43% in the previous month.

The Gross Raw Materials group dropped 2.02% in December, following a 1.68% fall in November. The following items helped bring the rate down: oranges (6.37% to -6.20%), coffee beans (6.64% to -1.58%), and poultry (-2.49% to 6.69%). On the upside, the main drivers were corn (grains) (-8.95% to -0.63%), soy (grains) (-5.64% to -4.78%), and cotton (seed) (-4.50% to -0.87%).

The Consumer Price Index (CPI) dropped 0.09% in December, compared to 0.29% in November. Six of the eight expense categories that comprise the index recorded lower price variations, particularly the Transport group (0.33% to -1.02%). It is important to underline the behavior of the gasoline item in this expense category, which dropped 4.69% in December after rising 0.44% in November.

The groups Food (0.83% to 0.41%), Health and Personal Care (0.45% to 0.05%), Housing (-0.37% to -0.53%), Clothing (0.50% to 0.23%), and Communication (0.20% to 0.09%) also dropped in the period. The following items were the main drivers behind this trend: herbs and vegetables (22.63% to 7.62%), hygiene and personal care items (0.59% to -1.26%), household power bill (-2.54% to -4.19%), footwear (0.21% to -0.54%), and landline phone and internet plans (0.78% to 0.38%).

On the other hand, the Education, Reading and Recreation (0.33% to 0.95%) and Miscellaneous Expenses (0.05% to 0.27%) groups recorded higher rates. The main drivers within these expense categories were air tickets (2.53% to 19.37%) and postal fees (0.38% to 5.43%).

The Civil Construction Index (INCC) varied 0.12% in December, compared to 0.27% in November. The index for Materials, Equipment and Services varied 0.26%, compared to 0.47% in the previous month. There was no change in the Manpower cost index in December. This index rose 0.10% in the previous month.

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