The FINANCIAL — Brazil’s general price index, known as the IGP-M, picked up more than expected in September, generating additional pressure for the central bank in its fight against high inflation, according to Nasdaq.
The IGP-M rose 0.95% in September from August, compared with an increase of 0.28% in August from July, according to figures published on September 29 by the private Getulio Vargas Foundation, The IGP-M for September measured prices from Aug. 21 to Sept. 20.
The index is used to calculate annual adjustments in rental contracts of housing and commercial properties across Brazil.
The reading was above with analysts’ expectations, which called for an increase of 0.71% to 0.91%.
The closely watched IGP-M rate for the 12 months through Sept. 20 was 8.25%, up from 7.55% in August.
Wholesale prices, which carry a 60% weighting in the overall index, picked up 1.30% in the latest period, versus a rise of 0.20% in August.
Consumer prices, which have a 30% weighting in the index, were up 0.32%, compared with a 0.24% increase in August.
On the other hand, construction costs, which have a 10% weighting in the index, rose 0.22% in September, compared with August’s 0.80% increase.