Economy

In Brazil, index used in rental deals sees 0.52% inflation in May

The rate was lower than the previous month

Vitor Abdala

Published on 30/05/2022 - 14:42

Rio de Janeiro

Entrega de 528 novas moradias do programa de habitação de interesse social do Governo Federal, em São Sebastião, Distrito Federal — © Marcelo Camargo/Agência Brasil

The so-called General Price Index – Market (IGP-M, in the original Portuguese acronym), used to fix values in rental contracts, is reported to have faced 0.52 percent inflation in May this year. The rate was below the previous month (1.41%) and May 2021 (4.10%).

The result brings IGP-M inflation to a surge of 7.54 percent in the year and 10.72 percent in 12 months. In May 2021, the IGP-M was up 37.04 percent in 12 months.

The decline from April to May was driven by wholesale and retail prices. The Wholesale Price Index (IPA), which gauges the wholesale market, sank from 1.45 percent in April to 0.45 percent in May.

The Consumer Price Index (CPI), which measures the retail market, went from 1.53 percent in April to 0.35 percent in May.

On the other hand, the National Index of Construction Costs (INCC) shrank from 0.87 to 1.49 percent in the period.