A question that many ask themselves is about the value of the accumulated IGPM for 2022 , as it is an indicator that is part of our daily lives.
The General Market Price Index – IGPM – is what determines the values of rent adjustments. That is why it is so important to know what the value of this accumulated index is.
Therefore, if you have a rental agreement, it is worth understanding a little more about how this calculation is made and what its impact on the economy is.
What is IGPM?
Before knowing the accumulated IGPM value of 2022 , it is important to understand what IGPM is .
IGPM - General Market Price Index - is an indicator of price variation, which shows whether there was an increase or decrease in inflation in a predetermined period.
Created in 1940 and measured by Fundação Getúlio Vargas, it is an important indicator because it allows you to have an idea of the value of money, in addition to serving as a thermometer to assess the situation of the economy in the country.
It is an index used in the adjustment of rental contracts, based on the IGPM accumulated in the previous year. Hence it is known as rent inflation.
It also serves as a basis for readjusting health plans, school fees, electricity rates, among others.
In practice, when a product or service increases in value, it is because the IGPM for the month has also increased.
For those who make investments in fixed income, you should also be aware of the value of the IGPM, as it has an influence on the value of income.
What is the accumulated IGPM value of 2022?
The accumulated index of this index is the annual balance of the index, which corresponds to the average of the IGPM values disclosed in the last 12 months, being used as an indicator for the readjustments of the lease contracts.
The General Market Price Index changed 0.52% in May, compared to 1.41% in the previous month. With this result, the accumulated IGPM for 2022 is 7.54% in the year and 10.72% in 12 months.
In May 2021, the index had risen 4.10% and had accumulated a high of 37.04% in 12 months.
How is the IGPM calculated?
The index is calculated monthly throughout the year, until completing 12 months.
To measure inflation, prices are analyzed from the 21st of the previous month to the 20th of the reference month.
FGV analyzes data from seven capital cities: São Paulo, Rio de Janeiro, Salvador, Recife, Porto Alegre, Belo Horizonte and BrasÃlia.
For this calculation, the following is taken into account:
· IPA-M – Broad Producer Price Index: index that monitors retail variations;
· IPC-M – Consumer Price Index: measures prices that impact consumer purchasing power, for example, food and health;
· INCC-M – National Construction Cost Index: evaluates the cost of housing construction in the country, including materials and labor.
The weights of each of the component indices correspond to shares of gross domestic expenditure, calculated on the basis of the National Accounts, resulting in the following distribution:
60% for the IPA;
30% for the CPI;
10% for the INCC.
Why is it important to follow the IGPM values?
Even those who do not have an investment linked to the IGPM, it is important to follow the value, as well as the projections, which are indicated every 10 days.
Thus, you understand the possible impacts on your pocket and have a perspective of how much the rent adjustment or other contracts will be.
Consequently, when you know this number, it is possible to plan better, and not have an unpleasant surprise at the time of rent adjustment, for example.
In addition, as already mentioned, it is the way to have a broader view of the economic scenario.
Now, for those who make investments, this monitoring is essential, as it avoids the loss of purchasing power, that is, lose with investments. Therefore, it is an indicator that gives more security when investing.
Keep in mind that when you know the economic scenario and market projections, it helps you choose good investments in order to obtain the desired returns.
Finally, evaluating the change in indices is essential when the contract uses the IGPM as a form of profitability. In this way, you can check whether it is worth selling the security before the maturity date, for example.
What is the difference between IGPM and IPCA?
Both the IGPM and the IPCA serve to measure the fluctuation of prices and the population's cost of living, therefore, they are indicators of inflation.
But that doesn't mean they are the same.
While the IPCA takes into account the variation of prices to the final consumer to measure inflation, the IGPM takes into account the variation of prices in the stages of production.
What are the impacts of the IGPM on the economy?
Knowing now the accumulated IGPM of 2022 , what is its impact on the economy?
First, the index allows an assessment of the country's economic scenario.
A rise in prices usually indicates that inflation is high. And, this type of situation can represent a lack of control over macroeconomic conditions.
In addition, a rise in the IGPM today or in the month does not determine the entire context of the economy. In certain periods, the index can rise, pulled by some sector, without having a great influence;
Therefore, performing the analysis is essential.
The IGPM also impacts contract readjustments. Brazil has an economy, which we can call indexed. In this way, the index is used to readjust the value of residential rents, as well as health contracts, school fees, insurance, etc.
Therefore, it is an index that has a great impact on the population's pocket.
Now that you have learned what the 2022 IGPM is and everything that involves this index, it will be easier to understand the readjustments of rental contracts, energy bills, health plans, and thus, not be surprised by the higher values !
