The General Price Index – Market (IGP-M) for December was negative and registered a drop of 0.01%. Year-to-date, the indicator measured by Fundação Getulio Vargas (FGV) showed a drop of 1.05%.
The result “suggests an environment of lower cost pressure for 2026”, states in a note economist Matheus Dias, from the Brazilian Institute of Economics (Ibre) – linked to FGV and responsible for calculating the index.
The indicator is usually a reference for updating value values. rental contracts and prices, electricity and telephone bills, school fees, health plans and insurance.
“The IGP-M ends 2025 with an accumulated drop of 1.05%, a result that reflects a year marked by the slowdown in global activity and high uncertainty. These factors limited cost transfers, mainly impacting producer prices. Furthermore, the improvement in agricultural harvests contributed to easing raw material prices, reinforcing the deflation movement in the index”, highlights Matheus Dias in the note.
Unlike other indicators, the IGP-M was created at the request of private entities in the financial sector in the late 1980s. The indicator is measured between the 21st of one month and the 20th of the following month.
IPCA
According to the Focus bulletin, released this Monday (29), the financial market predicts that the year will close with Broad Consumer Price Index (IPCA, the country’s official inflation) of 4.32%a result below the target ceiling.
Defined by the National Monetary Council (CMN), the inflation target for 2025 is 3%, with a tolerance range of 1.5 percentage points up or down. In other words, the lower limit is 1.5%, and the upper limit is 4.5% (above, therefore, the estimated result of 4.32%).
