Inflation as measured by the IGP-10 slowed its rise in January due to less pressure on producers, says FGV.
Fuels, sugar, and soybeans explain the slowdown in the producer price index.
(Reuters)- The General Price Index-10 (IGP-10) rose 0,42% in January, starting the year with a slowdown compared to the 0,62% increase in the previous month, amid a cooling in producer prices, the Getulio Vargas Foundation (FGV) reported on Wednesday.
The advance recorded in January was slightly below the 0,43% increase expected in a Reuters poll, and brought the index to a cumulative decline of 3,20% over 12 months.
The Broad Producer Price Index (IPA), which measures the variation in wholesale prices and accounts for 60% of the overall index, rose 0,42% in January, from 0,81% in December.
"Fuels, sugar, and soybeans explain the slowdown in the producer price index," said André Braz, coordinator of price indices, although he warned that diesel oil has now reached the peak of the last readjustment authorized by Petrobras. "In the next surveys, diesel will have a smaller contribution to the cooling of the IPA rate."
The Consumer Price Index (IPC-10), which accounts for 30% of the overall indicator, accelerated its rise to 0,46% this month, compared to 0,22% in December.
"The adjustment of school tuition fees stands out, which should further boost the CPI rate throughout January," Braz explained.
Among the groups comprising the CPI with the greatest impact in the month, Food accelerated its increase from 0,40% to 1,41%, while Education, Reading and Recreation went from a gain of 0,97% to 1,37%.
Meanwhile, the National Construction Cost Index (INCC) rose 0,39% in January, after a positive variation of 0,01% last month.
The IGP-10 calculates producer, consumer, and construction prices between the 11th of the previous month and the 10th of the reference month.
Recent data from IBGE showed that Brazilian consumer inflation, as measured by the IPCA -- a benchmark for the target to be pursued by the Central Bank -- ended 2023 with an accumulated increase of 4,62%, falling below the target ceiling again after two consecutive years of exceeding it.