‘Rent inflation’ slows down in October, but food rises more | economy

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Inflation calculated by the General Price Index – Market (IGP-M) lost strength in October, after the surge of the previous month. The indicator, which is used to correct most residential rental contracts, was 3.23% this month, after reaching 4.34% in September.

IGP-M monthly variation – Photo: Economy G1

Even with the slowdown, is the highest rate for a month in October since 2002, when it was 3.87%. The data were released on Thursday (29) by Fundação Getulio Vargas (FGV). In 12 months, the IGP-M increased by 20.93%, and in the year, 18.10%.

IGP-M months of October – Photo: Economy G1

A deceleration of the indicator was driven by a truce in iron ore prices, which fell 0.71%, after rising 10.81% in September. As a result, the Wholesale Price Index (IPA), one of the three components of the IGP-M, decelerated from 5.92% to 4.15%.

But consumer prices, as measured by the Consumer Price Index (CPI) and construction – the other two indexes that make up the IGP-M – accelerated again this month. The CPI went from 0.64% to 0.77% (the biggest change since December 2019, when it was 0.84%), while the INCC accelerated from 1.15% to 1.69%.

Food weighed on consumer prices

FGV data show that food prices for consumers continued to accelerate this month. The rate, which was 1.30% in the previous month, reached 1.90%. Three of the four items with the greatest upward influence on the CPI this month were food: rice (14.84%), soybean oil (22.87%) and tomatoes (11.30%).

IGP-1000 – IPC – Photo: CEconomia C1

The biggest influence, however, came from airline tickets, which were 34.21% more expensive this month. New cars complete the list of the five biggest influences, with an increase of 0.70%.

Major upward influences:

  • To the producer
    Soybeans: 14.96%
    Corn grain: 10.95%
    Cattle: 6.92%
    Soybean meal: 13.45%
    Beef: 4.70%
  • To the consumer
    Flights: 34.21%
    Rice: 14.84%
    Soybean oil: 22.87%
    Tomato: 11.30%
    New car: 0.70%
  • In construction
    PVC pipes and connections: 16.28%
    Rebar and wires: 10.54%
    Aluminum frames: 7.07%
    Steel and iron pipes and connections: 7.62%
    Brick / ceramic tile: 5.31%

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