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The General Market Price Index (PGI-M) declined 1.08% in December, following a 0.49% decline in November, and closed the year with a cumulative increase of 7%. 54%. Getulio Vargas Foundation (FGV) this Friday (28).
The IGP-M serves as a reference for the correction of contract values, such as real estate leasing. In 2017, the index had a deflation of 0.52%.
In 2018, despite the deflation of the past few months, the IGP-M will exceed the country's official inflation, as measured by the IPCA. Analysts surveyed by the Central Bank's Focus report estimate that IPCA will end the year at 3.69%.
But with the real estate market still down, experts point out that it's possible to negotiate with homeowners when setting the rental price.
Monthly variation of IGP-M
in%
Source: FGV
The IGP-M undergoes a considerable influence of the oscillations of the dollar, as well as international quotations of products primary products, such as commodities and metals.
The Extended Producer Price Index (IPA), which measures wholesale prices and accounts for 60% of the IGP-M, declined by 1.67% in December. In November, the decline was 0.81%.
The raw materials index rose to 2.45% in December, following a 1.10% decline in November.
The consumer price index (CPI), compared with retail prices, which corresponds to 30% of the calculation, varied by 0.04% in December, compared with 0.09% in November.
The National Construction Cost Index (NCPI), which is also used to calculate the IGP-M, but with a weighting lower than the other sub-indexes, increased by 0.13% in December, compared to 0 26% in December. November.
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