The IGP-DI (General Price Index-Internal Availability) rose 1.25% in December, after registering a drop of 0.58% in the previous month, and ended 2021 with a rise of 17.74%, according to FGV. (Getulio Vargas Foundation) this Thursday (6).
The rise recorded last year was milder than the advance of 2020, when the index had accumulated a gain of 23.08%.
The expectation in a Reuters poll was an increase of 1.34% in December.
According to André Braz, price index coordinator, the December reading was mainly influenced by the 1.54% rise in the IPA-DI (AmploI Producer Price Index), which had dropped 1.16% in the previous month.
The index refers to the variation of wholesale prices and accounts for 60% of the general indicator, and last year it accumulated a high of 20.64%.
“The acceleration registered in the prices of iron ore (from -24.98% to 17.62%), of beef (from 2.60% to 8.33%) and of coffee (from 8.02% to 9, 16%) contributed significantly to the acceleration of producer inflation, the index with the greatest influence on the IGP, offsetting the cooling of consumer inflation,” Braz said in a note.
Among the groups that make up the IPA, the highlights were the Gross Raw Materials, which jumped 4.40% last month, leaving behind the fall of 6.40% registered in November.
Consumers, on the other hand, saw relief from inflationary pressures in December, as the IPC-DI (Consumer Price Index) —which accounts for 30% of the IGP-DI— slowed the rise to 0.57% from 1 .08% in the previous month. In 2021, the IPC-DI rose 9.34%
It is worth mentioning the behavior of Transport, which reduced its rise to 0.28% in December, from 3.07% in November, reflecting a strong cooling in gasoline prices. Fuel fell 0.36% last month, up 7.44% in November.
The INCC (National Construction Cost Index) rose 0.35% in December, compared to 0.67% in the previous month, closing the year up 13.85%.
The IGP-DI is used as a reference for price corrections and contractual values. It is also directly used in the calculation of GDP (Gross Domestic Product) and national accounts in general.
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