Index that measures rent inflation drops 0.95% in April

In April 2022, the index had risen 1.41% and had accumulated a rise of 14.66% in 12 months. The data were released this Thursday (27) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre/FGV).

The coordinator of Ibre/FGV André Braz said that the prices of important commodities for the productive sector continue to fall, favoring the arrival of this effect on consumer prices.

The IGP is the weighted arithmetic mean of three price indices: the Broad Producer Price Index (IPA), the Consumer Price Index (IPC) and the National Construction Cost Index (INCC). The indicator shows from which sectors the inflationary pressure in the country comes.

In April, the IPA fell 1.45%, after falling 0.12% in March. The main contribution to the result came from the processed foods subgroup, whose rate changed from -0.96% to 0.65% in the same period.

The IPC changed 0.46% in April, compared to 0.66% in March. The main pressure for the result came from the transport group, whose change changed from 2.22% to 0.85%. INCC

Finally, the INCC changed 0.23% in April and 0.18% in March. The three groups that make up the index recorded the following changes from March to April: materials and equipment (-0.07% to 0.14%), services (0.88% to 0.65%) and labor (0.27% to 0.23%).

The FGV indicator is used by telephone and electricity companies, partially accounting for the tariff readjustments in these segments. The indicator is also used as an index for service company contracts, such as education and health plans. In addition, explains the FGV, the IGP-M became popular as a reference for the readjustment of rent contracts.