The IGP-M (General Market Price Index), used as a reference to readjust the values of inflation contracts, such as real estate rentals, varied 1.24% in March. The rate represents acceleration compared to February, when the indicator stood at 0.04%.
As a result, the IGP-M accumulates a variation of 6.81% in the last 12 months. As of March 2019, the index had been 1,26%. The data was released today by the FGV (Getulio Vargas Foundation).
The IPA (Broad Producer Price Index), which accounts for 60% of the general index and calculates the change in wholesale prices, increased by 1.76% in the month, against a deflation of 0.19% in February.
rent inflation
However, contributing to this movement, the Gross Raw Materials group extended the hike to 4.77% in March, compared to 0.36% in the previous month. However, with an increase in iron ore, soy and coffee items. In turn, the CPI (Consumer Price Index), with a weight of 30% over the general index, slowed its rise to 0.12% in March, compared to 0.21% in the previous month.
Education, Reading and Recreation group gave the main contribution to the cooling of the CPI, as it went from a high of 1.04% in February to a decrease of 1.0.
Although in the midst of the coronavirus pandemic around the world, airline ticket prices were an important factor in this reading. Therefore, retreating 10.26%, compared to a gain of 0.34% previously. In short, the National Construction Cost Index (INCC) rose 0.38%, against a high of 0.35% in February.
There is guidance from both the FGV professor and the rental administrators. Therefore, owners and renters avoid a conflict in court at any cost at this time.
Also, remember that owning a property doesn't automatically mean having big resources. The owner can be a retired old lady who lives every month on that rent. And if she doesn't receive it, she's going to need it.
