Prices of commodities fired and the General Price-Market Index (IGP-M) increased by 4.10% in May, after an increase of 1.51% in April, informed the Getulio Vargas Foundation (FGV) this Friday, slightly above the expectations of economists.
With this result, the index accumulated an increase of 14.39% in the year and 37.04% in 12 months.
The Broad Producer Price Index (IPA), which accounts for 60% of the general index and determines the variation in wholesale prices, started to rise in 5.23% in May, after an increase of 1.84% in the previous month.
“The prices of important commodities have put pressure on producer inflation again,” explained André Braz, coordinator of price indices, calling attention to the increase in the rates of change of iron ore items (from -1.23% to 20.64%), sugar cane (from 3.43% to 18.65%) and corn (from 8.70% to 10.48%). “These three commodities accounted for 62.9% of the IPA’s result.”
Among the components of the index, the main highlight was the Gross Raw Materials group, which shot up 10.15% in May, after varying 1.28% in April.
Pressure from consumer price hikes also increased in the month, with the Consumer Price Index (CPI) weighing 30% over the general index, accelerating the rise to 0.61% in May, from 0, 44% in April.
The Housing group was the main responsible for this reading, with a gain of 1.16% in May, compared to an increase of 0.39% in the previous month. Residential electricity tariff prices accelerated the rise to 4.38% this month, against 0.06% in April.
The National Construction Cost Index (INCC), in turn, increased by 1.80% in the period, an increase of 0.95% in April.
The IGP-M is used as a reference for the correction of contract values, such as property rental.