The General Market Price Index (IGP-M) fell 0.99% in the second reading of April, according to the Getulio Vargas Foundation (FGV), with wholesale raw material prices declining sharply. In March 2016, the measure had advanced by 0.08%.
In Brazil, the IGP-M is closely watched as it is used to make price readjustments to contacts, especially home rental contracts.
The data also showed that the Extended Producer Price Index (IPA), which measures wholesale prices and has a weight of 60% of the general index, dropped to -1.60% from 0.08% in the last measure.
Within the IPA it was primary materials that retreated, from 4.62% in the period, against an increase of 0.28% in the previous month. On the other hand, finished goods increased by 0.27% in the second measure of April, compared to a fall of 0.22% in March.
Consumer prices were relatively stable, with the Consumer Price Index (CPI), which makes up 30% of the general index, increased by 0.30%. The main highlight of the group was transport, falling 0.34% after a high 0.45% during the month before.
Finally, the National Index of Construction Costs (INCC) fell 0.09% in the period of measurement, compared with a print of 0.52% in the previous period.
The second IGP-M estimate calculates price changes between the 21st day of the previous month to the 10th of the current month.