Brazil’s IGP-10 Rises 0.29% in January on Mining and Ethanol Costs

Overview

• The General Price Index–10 increased 0.29% in January, leaving the 12-month rate at –0.99%, according to FGV Ibre.
• The producer component (IPA-10) rose 0.24%, driven by extraction and mining led by iron ore and by a 4.59% jump in ethanol prices.
• The consumer index (IPC) advanced 0.39%, with FGV citing seasonal education fees and a reacceleration in food prices.
• The construction cost index (INCC) climbed 0.47% as labor costs accelerated to 0.78% and electrical conductors reflected higher copper prices.
• IBGE reported the industrial Producer Price Index fell 0.37% in November, the tenth straight monthly drop, with extractive industries down 3.43% on a weaker international backdrop and soft Chinese demand for iron ore.