Fundação Getulio Vargas’ General Price Index – 10 (IGP-10) has risen 2.53% so far in August. In July, it went up 1.91%. As a result, the index has increased 9.24% so far this year and 11.84% in the last 12 months. In August 2019, it fell 0.47% that month and was up 5.20% in the previous 12 months.

“The acceleration of major commodity prices in the Broad Producer Price Index, especially iron ore (5.78% to 9.82%) and soybeans (5.17% to 6.73%), helped raise IGP-10’s rate. There were also notable seasonal effects, such as the behavior of the price of fresh milk, which increased 13.76%, compared to 8.61% the previous month,” says André Braz, FGV’s price index coordinator.

The Broad Producer Price Index has risen 3.38% so far in August. Last month, it increased 2.54%. Breaking down the results by processing stage, the prices of Finished Goods went up 1.02% in July and 0.86% in August. The main contribution to this result came from the Fuels for Consumption subgroup, whose rate fell from 17.04% to 7.63%. The Finished Goods (ex) Index, which excludes the Fresh Foods and Fuels for Consumption subgroups, went up 1.21% in August, after rising 1.45% in July.

The Intermediate Goods group’s rate went from 2.47% in July to 2.64% in August. The main driver for this movement came from the Materials and Components for Construction subgroup, which rose from 0.43% to 1.73%. The Intermediate Goods (ex) Index, obtained by excluding the Fuels and Lubricants for Production subgroup, increased 1.58% in August, after going up 1.35% the previous month.

The Gross Raw Materials group’s rate went from 4.09% in July to 6.45% in August. The main contributions to this growth came from the following items: Iron Ore (5.78% to 9.82%), Corn (-2.06% to 4.53%) and Coffee Beans (-9.28% to 6.96%). On the other hand, the main downward moves were seen in Beef (8.69% to 5.02%), Poultry (10.79% to 2.94%) and Cassava (1.79% to -1.02%).

The Consumer Price Index (CPI) increased 0.48% in August, after rising 0.50% in July. Four of the index’s eight spending classes recorded decreases in their rates of variation, most notably the Education, Reading and Recreation group (0.21% to -0.77%). In this expense category, the Airfares item dropped from 13.64% to -3.24%.

The following groups also saw decreases in their rates of variation: Transport (1.37% to 1.14%), Apparel (-0.06% to -0.25%) and Food (0.34% to 0.33%). In these spending classes, the major influences came from the following items: Gasoline (4.17% to 3.37%), Clothing (-0.05% to -0.47%) and Vegetables (-8.07% to -10.23%).

In contrast, there were accelerations in the Housing (0.26% to 0.64%), Health and Personal Care (0.40% to 0.50%), Miscellaneous Expenses (0.20% to 0.42%) and Communication (0.60% to 0.72%) groups. The main contributions to this movement came from the following items: Residential Electricity Charges (-0.09% to 2.01%), Hygiene and Personal Care Goods (-0.31% to 0.58%), Cell Phone Repair (-0.17% to 2.09%) and Pay TV Monthly Subscription Fees (1.04% to 2.22%).

The Civil Construction Index (INCC) rose 1.01% in August, compared to 0.62% in July. The index’s three component groups recorded the following changes between July and August: Materials and Equipment (0.97% to 1.33%), Services (0.10% to 0.25%) and Labor (0.47% to 0.93%).

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