IGP-DI rises 1.60% in June 2020

As a result, the indicator has gone up 4.54% so far this year and 7.84% in the last 12 months. In June 2019, it rose 0.63% and its 12-month increase was 6.04%.

The General Price Index – Internal Availability (IGP-DI) rose 1.60% in June, more than in the previous month, when it increased 1.07%. As a result, the indicator has gone up 4.54% so far this year and 7.84% in the last 12 months. In June 2019, it rose 0.63% and its 12-month increase was 6.04%.

“IGP-DI went up 2.74% in the second quarter. Among its component indexes, the main highlight was the Broad Producer Price Index (IPA), which increased 4.14% in the same period. The most notable items here were Iron Ore (26.09%), Soybeans (17.79%) and Beef (7.86%),” says André Braz, FGV’s price index coordinator.

IPA went up 2.22% in June, after increasing 1.77% in May. Breaking down the results by processing stage, the Finished Goods group went from 1.24% in May to 1.78% in June. The main driver for this increase was the Fuels for Consumption subgroup, whose rate accelerated from 5.89% to 20.61%. The Finished Goods (ex) index, which strips out fresh foods and fuels for consumption, rose 1.31% in June, compared to 0.90% in May.

The Intermediate Goods group’s rate went from -0.09% in May to 2.75% in June. The main driver for this movement was the Fuels and Lubricants for Production subgroup, whose rate went from -6.48% to 12.11%. The Intermediate Goods (ex) index, calculated after excluding fuels and lubricants for production, rose 1.71% in June, compared to 0.68% in the previous month.

The Raw Materials processing stage increased 2.16% in June, down from 4.15% in May. The following items contributed to the decline in the group’s rate: Iron Ore (12.32% to 3.93%), soybeans (8.59% to 1.21%) and coffee beans (-1.05% to -13.27%). Conversely, it is worth mentioning Beef (-0.18% to 5.69%), Fresh Milk (-2.26% to 5.36%) and Corn (-6.40% to -3.68%).

The Consumer Price Index (IPC) increased 0.36% in June, after decreasing 0.54% in May. Seven of the index’s eight spending classes saw an increase in their rate of change: Transport (-2.06% to 1.05%), Education, Literature and Recreation (-2.12% to -0.40%), Communication (0.01% to 0.88%), Food (0.37% to 0.57%), Housing (-0.19% to 0.00%), Clothing (-0.23% to 0.08%) and Miscellaneous Expenses (0.10% to 0.19%). In these spending categories, it is worth mentioning the behavior of these items: Gasoline (-7.08% to 3.28%), Airfares (-14.08% to 1.37%), Phone, Internet and Pay TV Packages (0.00% to 2.00%), Beef (0.09% to 2.59%), Household Appliances (0.06% to 2.02%), Footwear (-0.97% to -0.41%) and Banking Services (0.12% to 0.21%).

On the other hand, only the Health and Personal Care group (0.21% to 0.18%) showed a decrease in its rate of change. This spending class was influenced by the Hygiene and Personal Care Products item, whose rate went from 0.06% to -0.72%.

The core IPC rate went up 0.19% in June, compared to 0.11% the previous month. Of IPC’s 85 component items, 41 were excluded to calculate this core number. Eighteen of them recorded rates below -0.04%, the lower cut-off point, while 23 recorded variations of more than 0.64%, the upper cut-off point. In June, the diffusion index, which measures the proportion of items with a positive rate of change, was 60.65%, up 12.91 percentage points from 47.74% in May.

The Civil Construction Index (INCC) varied 0.34% in June, compared to 0.20% in May. INCC’s three component groups recorded the following variations between May and June: Materials and Equipment (0.55% to 0.87%), Services (0.02% to 0.23%) and Manpower (no variation, for the third consecutive month).

The complete study is available here.


Any opinions expressed by Fundação Getulio Vargas’s staff members, duly identified as such, in articles and interviews published in any media, merely represent the opinions of these individuals and do not necessarily represent the institutional viewpoints or opinions of FGV. FGV Directive No. 19 / 2018.