THE General price index in the market (IGP -M), also known as rent inflation, closed July at -0.77%, marking the third month followed by deflation -when prices are, on average, cheaper. Of the seven months of 2025, this was the fourth with negative result. In June, the fall was 1.67%. 
The last time the IGP-M presented a sequence of more than two of these followed by deflation was from April to August 2023. In 12 months, IGP-M has 2.96%, lower level since June 2024 (2.45%). In March 2025, the indicator reached 8.58%, Since then, pointing trajectory. In July last year, the index had marked 0.61%.
The data were released on Wednesday (30) by the Brazilian Institute of Economics (IBRE) of the Getulio Vargas Foundation (FGV).
FGV takes into account three components to investigate IGP-M. The highest weight is the Large Producer Price Index (IPA), which measures the inflation felt by the producers and accounts for 60% of IGP-M full.
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In July, the IPA presented 1.29%deflation, pulled down mainly by coffee in grain (-22.52%), iron ore (-1.86%), million in grain (-7.54%) and potatoes (-29.63%).
Another component of IGP-M is the Consumer Price Index (IPC), which accounts for 30% of the indicator. In July, the IPC rose 0.27%. The most pressured items were the electricity bill (2.74%) and airline tickets (6.29%), which are usually most sought after in school holidays.
In July, as well as the previous month, the Energy Account had the red tariff flag level 1determined by the government to fund thermoelectric plants in low times in the hydroelectric reservoirs. The flag exerts additional $ 4.46 per 100 kilowatt hours (kWh) consumed.
The third component measured by FGV is the National Construction Cost Index (INCC), which rose 0.91% in the month. Within the INCC, materials, equipment and services rose 0.86%, while the cost of labor was 0.99% higher.
Rental Inflation
IGP-M is known as rent inflation because the 12-month accumulated is usually the basis for calculating annual real estate contract readjustment. In addition, the Index is used to readjust some public tariffs and essential services.
THE FGV makes the price collection in Belo Horizonte, Brasilia, Porto Alegre, Recife, Rio de Janeiro, Sao Paulo and Salvador. The IGP-M survey period was June 21 to July 20.
