IGP-10 rises 0.05% in January 2023, says FGV

The General Price Index-10 (IGP-10) increased by 0.05% in January, less variation than in the previous month, when it increased by 0.36%. In 12 months, the indicator accumulates a high of 4.27%. In January 2022, the index advanced 1.79%, the month in which it accumulated an increase of 17.82% in 12 months. The result was disclosed today (17) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).

For the coordinator of Price Indexes, André Braz, despite the prices of important commodities to the producer are on the increase, as are the cases of iron ore (11.92%), cattle (2.40%), coffee (5.23%) and beans (10.30%), the fall registered in the Fuel prices, especially gasoline (-5.31%) and Diesel (-7.15%), contributed to contain the increase in the producer index rate, which fell by 0.06% in this edition.

“This result favored the deceleration of the 12-month rate of the IGP-10, which is at 4.27%, being the lowest result for the IGP-10 since November 2019, when it accumulated a high of 3.33%”, he noted .

Broad Producer Price Index (IPA)

The Extended Producer Price Index (IPA), which calculates inflation in the segment, also dropped by 0.06% in January, which means an opposite movement compared to the previous month. In that month, the index registered an increase of 0.31%. In the analysis by stages of processing, the prices of Finished Goods moved from an increase of 0.30% in December to a decrease of 0.59% in January. According to Ibre, the processed food subgroup, whose rate changed from 0.52% to -1.03%, was the main contribution to the result. The index related to Final Goods (ex), which excludes the food subgroups in natura and fuels for consumption, was another one that changed course. In January it fell by 0.33%, while in the previous month it registered an increase of 0.35%.

In the group of Intermediate Goods, the fall was accentuated, going from -0.40% in December to -1.33% in January. “The main contribution to this movement came from the subgroup fuels and lubricants for production, whose rate changed from -0.56% to -6.66%. The Intermediate Goods (ex) index, obtained after excluding the subgroup fuels and lubricants for production, fell 0.18% in January, after falling 0.36% in the previous month”, reported Ibre.

The change in the Gross Raw Materials group rose from 1.12% in December to 1.87% in January. The main influences for the advance were coffee beans, which registered a drop of 8.37% to a high of 5.23%; iron ore increased from 12.08% to 11.92% and cattle with a decrease of 0.31% increased to 2.40%. In the opposite direction, the most relevant movements were in soybeans (-0.14% to -1.13%), oranges (0.66% to -8.59%) and poultry (-1.14% to -3.41%).

Consumer Price Index (CPI)

The Consumer Price Index (CPI), which measures retail, rose 0.47% in January, slightly less than in December, when it rose 0.58%. Among the eight expense classes that make up the index, four decreased: transport (0.85% to 0.06%), food (1.12% to 0.67%), housing (0.46% to 0.12% ) and sundry expenses (0.49% to 0.10%). “The main contributions to this movement came from the following items: gasoline (1.82% to -0.71%), vegetables (11.79% to 4.04%), residential electricity tariff (1.58% to -0.53%) and banking services (0.76% to 0.00%)”, added Ibre.

The January result also showed that education, reading and recreation (-0.45% to 1.13%), communication (0.11% to 0.73%), clothing (0.35% to 0.87 %) and health and personal care (0.58% to 0.69%) had an increase in their rates of change. According to the index, the main influences came from formal courses (0.00% to 2.49%), mobile phone tariff (-0.10% to 0.92%), clothing accessories (-1. 13% to 1.51%) and hygiene and personal care items (0.51% to 0.71%).

National Construction Cost Index (INCC)

Also in January, the National Construction Cost Index (INCC) rose 0.14%, while in the previous month it was 0.36%. The three groups comprising the indicator showed variations from December to January. Materials and equipment dropped from 0.27% to a drop of 0.14%; services rose from 0.35% to 0.44% and labor fell from 0.44% to 0.34%.

The IGP-10 is the result of the analysis of prices collected between the 11th of December 2022 and the 10th of January 2023.

Translated to english by RJ983

From Brazil, by EBC News

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