Cheaper rent
The index shows a decrease and closes July with a cumulative increase of 5,18% over twelve months.
Marli Moreira
Reporter from Agência Brasil
São Paulo - The General Price Index – Market (IGP-M) showed an increase of 0,26% in July. In June, the increase was 0,75%, and in July 2012, 1,34%. The accumulated rate for the first seven months of this year was 2,01%, and over 12 months, 5,18%. This last variation serves as the basis for calculating the renewal of most rental contracts. In June, the accumulated index reached 6,31%.
The analysis carried out by the Brazilian Institute of Economics (Ibre), of the Getulio Vargas Foundation (FGV), indicates that between June 21 and July 20, there were price drops in all three components of the IGP-M.
In the Broad Producer Price Index (IPA), which reflects prices in the wholesale sector, there was an average increase of 0,3%, below the variation recorded in June, of 0,68%. Among the reasons is the 0,58% decrease in the final goods subcomponent, with emphasis on unprocessed foods, which fell 6,64% compared to a negative variation of 1,39% in June.
Some commodities – agricultural and mineral goods traded on the international market – also showed price reductions or a slowdown in the rate of increase, impacting the overall IGP-M result. Soybeans were quoted at values 4,92% higher than in June, a period in which the rate had risen the most, 11,38%. Iron ore fell by 4,32% compared to a 0,34% increase in June, and corn fell by 2,96% compared to a 1,39% decrease in June.
The Consumer Price Index (CPI) fell by 0,07% compared to an increase of 0,39% in the previous month, a result driven mainly by food items, which saw a negative variation of 0,48% compared to an increase of 0,23%. Among the items, there were price decreases for tomatoes (from -6,15% to -29,96%); papaya (from 20,75% to -26,81%) and carrots (from -18,86% to -17,41%).
In the third component of the IGP-M, the National Construction Cost Index (INCC) rose by 0,73%, a lower rate than in the previous survey when it had increased by 1,96%. The main contribution to this decrease was seen in labor, with an increase of 1,05% compared to 3,24%.