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
Corn grain: 10.95%
Soybean meal: 13.45%
- To the consumer
Soybean oil: 22.87%
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%