IGP-DI falls 0,50% in March due to drops in rice prices, says FGV.
The IGP-DI calculates producer, consumer, and construction prices between the 1st and the last day of the reference month.
Reuters - The General Price Index-Domestic Availability (IGP-DI) fell 0,50% in March, registering a slightly weaker result than expected amid falling rice prices, after rising 1,0% in the previous month, the Getulio Vargas Foundation (FGV) reported this Friday.
A Reuters poll of economists had expected a 0,47% decline for the month.
"All three components of the IGP slowed down in March. In the Producer Price Index (IPA), the loss of momentum was influenced by the falls in the prices of iron ore, cattle and rice," explained André Braz, economist at FGV IBRE.
"In the Consumer Price Index (CPI), the most notable decreases were in airfares, rice, and electricity," he added.
During this period, the Broad Producer Price Index (IPA-DI), which accounts for 60% of the overall indicator, fell 0,88% in March, compared to a rise of 1,03% in the previous month.
In the IPA (Wholesale Price Index), the drop in Raw Materials was the most notable factor in March's performance, falling 2,1% for the month, after a gain of 1,53% in February.
The main contributions to the IPA movement came from the items iron ore (-0,54% to -4,74%), beef (-2,72% to -5,21%) and paddy rice (-2,53% to -11,51%).
In turn, the Consumer Price Index (CPI) -- which accounts for 30% of the IGP-DI -- rose 0,44%, slowing down compared to the 1,18% increase in February.
In March, there was a decrease in four of the eight categories that make up the index: Housing (3,80% to 0,52%), Transportation (1,41% to 0,41%), Miscellaneous Expenses (1,07% to 0,32%), and Clothing (0,14% to -0,01%).
Airfare was the biggest highlight of the IPC (Consumer Price Index), falling 10,38% in the month, compared to a 16,86% drop in February. Rice registered a 1,21% decrease, after falling 1,35% in the previous month.
The National Construction Cost Index (INCC) registered an increase of 0,39% in March, slightly below the 0,40% gain of the previous month.
The IGP-DI calculates producer, consumer, and construction prices between the 1st and the last day of the reference month.
