Price Index for Rental Contracts in Brazil Accumulate Inflation of 6.53 Percent in 12 Months

RIO DE JANEIRO, BRAZIL – The General Price Index-Market (IGP-M), used in the readjustment of residential rental contracts, registered inflation of 0.53 percent in the second ten-day prior forecast for July. The rate is lower than the one observed in the same forecast for June (0.75 percent). According to the Getúlio Vargas Foundation (FGV), the IGP-M has accumulated inflation of 6.53 percent in twelve months.

The fall in the rate from June to July was led by wholesale prices. The Broad Producer Price Index, which measures wholesale prices, registered inflation of 0.62 percent in the second prior of July, compared to 1.15 percent in the June prior.

On the other hand, retail and construction rates were high. The Consumer Price Index, which measures retail, went from a deflation (price drop) of 0.05 percent in June to an inflation rate of 0.10 percent in pre-July. The National Construction Cost Index, which had not fluctuated in the prior of June, registered a rate of 0.93 percent in July.