The IGP-M recorded a rise of 0.21% in July, after having risen 0.59% in the previous month, the Fundação Getulio Vargas said on Thursday, reflecting a drop in commodities and the effect of recent tax cuts.
This month's data came below expectations in a Reuters survey with analysts, for an advance of 0.30%, and led the general index to accumulate a high of 10.08% in 12 months.
According to the FGV, the Broad Producer Price Index, which accounts for 60% of the IGP-M and calculates the change in wholesale prices, slowed the rise to 0.21% in July, from 0.30% in June.
“Prices of important commodities are falling, reflecting the risks of a less encouraging macroeconomic scenario”, explained the coordinator of price indices, André Braz.
A declaração do André Braz destaca a aceleração nas perdas dos preços de iron ore from -0.32% to -11.98%, corn from -1.21% to -5.00% and soybeans from -0.80% to -2.05%.
Already the Consumer Price Index, which has a weight of 30% in the general index, retreated 0.28% in July, after having advanced 0.71% in June.
“The reduction in the ICMS on electricity and gasoline significantly influenced the result of the IPC”, said Braz.
This statement adds that, had it not been for the recent tax cut, the consumer index would not have registered a negative rate.
The law that sets a ceiling for ICMS rates on the fuel, gas, energy, communications and public transport sectors was sanctioned by the government at the end of June.
The National Construction Cost Index, in turn, increased by 1.16% in the period, up 2.81% in June.
The IGP-M calculates producer, consumer and civil construction prices between the 21st of the previous month and the 20th of the reference month.
Sources: investing.com
