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Brazil’s general price index rises 1.18% in August; accumulates 32.84% during last 12 months

RIO DE JANEIRO, BRAZIL – The General Price Index-10 (IGP-10) rose 1.18% in August, following a 0.18% increase in July, according to data released Tuesday, August 17, by the Getúlio Vargas Foundation (FGV).

With this result, the index accumulated a rise of 16.88% in the year and 32.84% in 12 months. In August 2020, the index was up 2.53% for the month and had posted a 12-month increase of 11.84%.

Inflation is on the rise in Brazil. (Photo internet reproduction)
Inflation is on the rise in Brazil. (Photo internet reproduction)

“The impact of the drought and frost is more evident in the result of the producer index. Among commodities, corn (10.03%) and coffee (13.76%) were the most affected. Among final products, fresh food prices increased by 5.12%. In addition to food prices, prices of fuel and lubricants for production increased by 3.72% and also contributed to the acceleration of inflation for the producer,” said André Braz, coordinator of the price index.

The broad producer price index (IPA), which measures fluctuations in wholesale prices and accounts for 60% of the overall index, rose 1.29% over the period, compared with a 0.07% decline in July.

Among the IPA components, the highlight was the group of commodities, which rose by 0.55% in August after falling by 1.78% in the previous month.

The consumer price index (IPC-10), which accounts for 30% of the overall index, rose 0.88% in the period, compared to 0.70% in July. Food inflation picked up in August, rising 1.13%, following a 0.45% increase in the previous month.

The National Construction Cost Index (INCC) rose 0.79% in August, following a 1.37% increase in the previous month.

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