The General Price Index – Market (IGP-M) rose 1.52% in October. The percentage is higher than the result of the previous month, when it increased by 0.62%. In the year, the indicator, which is often used to correct inflation in rental contracts, accumulates an increase of 4.20% in the year and 5.59% in the last 12 months. In October 2023, a period in which it increased by 0.50%, the IGP-M accumulated a decline of 4.57% in 12 months. The data was released this Wednesday (30) by the Brazilian Institute of Economics of the Getúlio Vargas Foundation (FGV/Ibre)
Ibre economist Matheus Dias reported that in October, in addition to the adverse climate effects, there was the impact of global demand for commodities. “In the IPA, the biggest impacts were recorded in the prices of cattle, beef and iron ore, export products that showed a significant increase in the volume exported. In the Consumer Index, the biggest contribution came from the residential electricity tariff, a consequence of the adoption of the red tariff flag, level 2. In civil construction, the biggest impact is due to the significant increase in the prices of materials, equipment and services,” according to the text published by the institute.
IPA
Also in October, the Broad Producer Price Index (IPA) increased by 1.94%. According to Ibre, this is a significant improvement compared to September’s performance. At that moment, the indicator showed an increase of 0.70%. “Analyzing the different stages of processing, it can be seen that the Final Goods group rose 1.36% in October, a higher rate compared to the previous month, when it registered an increase of 0.69%.”
In the researchers’ assessment, the increase in the subgroup of processed foods, from 1.88% to 4.38%, in the same interval, contributed to the increase in the group. “In addition, the index corresponding to final goods (ex), which excludes food subgroups in nature and fuels for consumption, rose from 0.88% in September to 1.88% in October”, he added.
Despite being less intense than in the previous month, there was also an upward movement, in October, in the intermediate goods group (0.13%). In the previous result it had registered 0.57%. “The main factor that influenced this decline was the supplies subgroup, whose rate went from 1.21% to -0.89%. The intermediate goods index (ex), which excludes the subgroup of fuels and lubricants for production, rose 0.52% in October, but lower than the 1.00% increase in September,” FGV reported.
Another advance, in October, was in the raw materials stage (4.59%). A significant increase also because in September it had been 0.87%. “The acceleration of this group was mainly influenced by key items, such as iron ore, which reversed its rate from a drop of 6.01% to an increase of 7.20%, cattle, whose rate increased from 4.07% % to 11.33%, and soybeans, which rose from 2.59% to 4.63%”, he highlighted.
In different performance, some items had an opposite behavior. Among them, milk in naturewhich fell from 5.21% to 1.66%; pigs, with a deceleration from 9.54% to 2.62% and coffee beans, which decreased from 4.14% to 2.43%.
CPI
Still in October, the Consumer Price Index (IPC) rose 0.42%, a higher percentage than in September, when it increased 0.33%. Five of the eight expense classes that make up the indicator registered an increase: housing (1.00% to 1.35%), food (-0.12% to 0.13%), clothing (-0.23% to 0. 23%), health and personal care (0.19% to 0.35%) and communication (0.01% to 0.14%).
According to Ibre, the biggest influences on these expense classes were the residential electricity tariff (3.76% to 5.51%), vegetables (-12.47% to -5.16%), footwear (-0 .10% to 0.76%), hygiene and personal care items (-0.40% to 0.53%) and telephone, internet and pay TV combo (-0.38% to 0.14%) .
In contrast, there was a decline in rates for the groups education, reading and recreation (0.59% to -0.02%), transport (-0.01% to -0.12%) and miscellaneous expenses (1.24% to 1.08%) showed declines in their rates of variation. Within these expense classes, it is important to highlight the items: airfare (3.55% to -0.11%), ethanol (-0.43% to -1.71%) and cigarettes (5.35% to 3 .01%).
INCC
The increase in the National Construction Cost Index (INCC) in October was 0.67%. It is higher than the previous one (0.61%). “Analyzing the three constituent groups of the INCC, the following variations were observed in the transition from September to October: the materials and equipment group showed an acceleration, going from 0.60% to 0.72%; the services group increased from 0.50% to 0.70%; and the labor group recorded a decline, varying from 0.64% to 0.60%”, concluded the institute.
