Inflation

Fall of the index from December to January was determined by the variation of producer prices

The Brazilian Institute of Economics of the Getulio Vargas Foundation published, on Tuesday (7), the General Price Index - Internal Availability (IGP-DI) of January.

According to FGV data, inflation closed the first month of 2017 with a variation of 0.43%, showing a price deceleration that reached 0.4 percentage points in relation to last December, when it was 0.83%. With the result, the IGP-DI accumulated in the last twelve months is 6.02%.

The index disclosed refers to the prices collected between January 1st and January 31st. The deceleration from December to January was determined by the variation of producer prices, as both consumer and construction prices closed the month on the rise.

The institute's data also indicate that the Extended Producer Price Index (IPA) closed January with a change of 0.34%, a decrease of 0.76 percentage point from 1.1% of the variation of December last year.

The contraction of producer prices reflects the fall in two of the three component IPA indices. The item End Goods had its prices reduced from a high of 0.24% for a deflation (negative inflation) in January: 0.61%; While Gross Raw Materials prices fell by 1.4 percentage point between December and January (from 2.08% to 0.24%).

Meanwhile, prices of the Intermediate Goods group rose from 1.11% to 1.47% between December and January - up 0.36 percentage points.

Consumer prices

The Consumer Price Index (CPI) increased 0.69% in January, compared to 0.33% in December, a rise of 0.36 percentage point between one period and another. In this case, the prices of four of the eight component expenditure classes of the index contributed to the increase.

The highest contribution to the IPC's progress came from the Education, Reading and Recreation group, which increased from 0.95% to 4.15%. In this class of expenditure, we highlight the behavior of the item formal courses, whose rate went from 0.00% to 9.80%.

On the other hand, the groups Health and Personal Care (0.71% to 0.35%), Clothing (0.73% to -0.27%), Miscellaneous Expenses (1.50% to 0.39%) and Food (0.44% to 0.39%) showed a decrease in their rates of change.

Source: Portal Brasil, with information from Agência Brasil