IGP-M registers inflation of 0.05% in March

The General Price Index – Market (IGP-M), calculated by the Getulio Vargas Foundation (FGV), recorded inflation of 0.05% in March this year. In February, the indicator had determined deflation (fall in prices) of 0.06%. In March 2022, however, inflation had been higher: 1.74%.

As a result, the IGP-M accumulates an inflation rate of 0.20% in the year. In 12 months, the accumulated rate is 0.17%, well below the 14.77% of March last year.

The increase in the rate from February to March was driven by retail and wholesale prices. The Consumer Price Index (CPI), which measures retail, increased from 0.38% in February to 0.66% in March.

The Broad Producer Price Index (IPA) increased, but continued to record deflation, changing from -0.20% in February to -0.12% in March.

On the other hand, inflation in the National Construction Cost Index (INCC) fell from 0.21% in February to 0.18% in March.

Indicator Calculation

To arrive at the IGP-M, the FGV considers the variation in prices of goods and services, as well as raw materials used in agricultural, industrial and civil construction production. Thus, the result of the IGP-M is the weighted arithmetic mean (considering the contribution of each term) of producer (IPA), consumer (IPC) and civil construction (INCC) inflation.

The IGP-M is used by telephone and electric power companies, partially responsible for tariff adjustments 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.

Matter amended, at 9:28 am, to add the last two paragraphs.

Economia,Inflação,IGP-M,FGV,Fundação Getulio Vargas