Rent inflation rose 0.87% in December. 2021 closes at 17.8%

The IGP-M (General Price Index – Market) rose 0.87% in December, after changing by 0.02% in November, according to information released today by FGV (Foundation Getúlio Vargas). Compared to previous years of the historical series, which started in 2002, this is the second-highest rise in the index, driven by changes in consumption caused by the pandemic.

Between January and December 2021, the indicator known as “rent inflation” recorded an increase of 17.78%. In December 2020, the index was up 0.96% and had a cumulative increase of 23.14% in 12 months, ending the year with the highest annual variance in the series.

According to the information released by the FGV, Andre Braz, Coordinator of Price Indicators, stated that the monthly figures were affected by the rise in beef prices, which is a reflection of domestic demand and the resumption of exports, in addition to the acceleration of crop prices. Affected by frost and drought, like coffee.

“[Café e açúcar] It also helps explain the 20.57% increase accrued by the IPA in 2021. Sugar cane prices are up 57.13% in the year, while the price of coffee is up 152.35% in the same period’, he details in Brazil.

The IGP-M has become a parameter for real estate brokers and tenants when determining amendments to real estate contracts. The index shows the variance in consumer prices and also tracks the cost of primary products, wholesale prices, raw materials and construction inputs.

As the pandemic progressed, the indicator in 2020 was higher than Brazil’s official inflation, which was measured by the IPCA (Consumer Price Index).

IPA rose 0.95% in December

The broad Producer Price Index (IPA) rose 0.95% in December, after declining by 0.29 in November. In the analysis by processing stages, the final goods group rate changed by 0.53% in December. In the previous month, the group price rose 0.97%.

The main contribution to the result came from the subgroup fuel. The rate rose from 8.60% to 0.25% in the same period. The finished goods index (for example), which excludes subgroups of fresh food and fuels for consumption, changed by 0.70% in December versus 0.51% in the previous month.

The intermediate goods rate increased from 3.38% in November to 1.02% in December. The main culprit for this decline was the Subgroup of Materials and Components for Manufacturing, which decreased from 2.13% to 0.40%.

Also according to the FGV, the raw materials stage rose 1.22% in December, compared to a decline of 4.84% in
November.

The following items contributed to the group rate advance: iron ore (-15.15% to -0.52%), cattle (-4.39% to 11.69%) and soybeans (-2.85% to -1.03%). In the opposite direction, the most notable points were poultry (-1.37% to -0.08%), orange (-1.35% to -4.10%), and cottonseed (1.41% to 0.05%).

CPI changed 0.84% ​​in December

Compared to 0.93% in November, the Consumer Price Index (CPI) varied by 0.84% ​​in December of this year. The Getúlio Vargas Foundation explains that six to eight account classes recorded a decrease in their difference rates, which affected the bottom line.

The main contribution came from the transport group (2.93% to 1.26%). In this category of expenses, it is worth noting the behavior of the gasoline category, which increased from 7.14% in November to 2.24% in December.

Food groups (0.74% to 0.54%), communications (0.17% to 0.05%), health and personal care (0.21% to 0.17%) also showed decreases in their variability), and miscellaneous expenditures (0.22% to 0.13%). ) and clothing (0.62% to 0.61%).

The National Construction Cost Index (INCC) posted a 0.30% gain in the period, after rising 0.71% in the previous month.