Accumulated civil construction inflation from January to July is 9,11% with monthly IPCA of 1,48%: “Brazilians away from home ownership”

Tuesday, August 09th, will be marked by turmoil after the IBGE releases data regarding Brazilian inflation, both for civil construction and other areas of the economy. 

This Tuesday, August 09th, the IBGE, Brazilian Institute of Geography and Statistics, released data referring to the National Civil Construction Index (Sinapi), which shows the inflation of civil construction, which shows its accumulated increase of at least 9,11% between January and July of this year, being 1,48% only in the previous month, which is still below the June data, which reached 1,68%. 

Today, there was also thepublication of national inflation data, in which the IPCA fell by 0,68%, this was one of the highest deflation rates since 1998. The fall in inflation under the Bolsonaro government, due to the control of fuel and electricity prices, was greater than that caused by the government of Luiz Inácio Lula da Silva. Despite the tax control on diesel, gasoline and ethanol, the fuel widely used by truck drivers, diesel, is still flirting with R$ 8 in Santa Catarina (SC). 

The data, which were considered more positive than expected by economists, caused the dollar to plummet and return to R$5,11. 

Accumulated civil construction inflation in the last twelve months reaches 14%

When analyzing the graph with the accumulated construction inflation of the last twelve months, there is a value of 14,07%, which is still below the accumulated 14.53% recorded in the previous twelve months, with an increase of 28,6% in two years.  

The second semester ended with one of the highest rates of the year for civil construction inflation, which may represent the end of the dream of owning a home for middle and lower class Brazilians. The square meter in the month of July reached R$ 1.652,27, of which almost R$ 988 related to material and the rest for labor for construction. 

Despite being one of the biggest highs of 2022, when analyzing the data from July 2022 with 2021, there is an exponential drop, since last year's monthly result was represented by an increase of 2,88%.

Paraná (PR) is one of the states with the highest rise in inflation in July 

The state of Paraná (PR) presented a monthly variation of materials of around 5,1%, one of the highest results in the country. The smallest increases occurred specifically in the Northeast, following this order: 0,85% (North), 1,50% (Northeast), 1,05% (Southeast), and 1,24% (Midwest). In terms of costs per square meter, the North region had the lowest values, at R$ 1.622,08 (North); BRL 1.546,52 (Northeast); BRL 1.723,94 (Southeast); BRL 1.717,01 (South) and BRL 1.658,26 (Midwest).

What is Sinapi?

O Sinapis works together with Caixa and IBGE to produce surveys on monthly values ​​of civil construction costs, measuring expenditure on materials, labor and specialized machinery. That is, they are specialists when it comes to housing and basic sanitation. 

The statistics prepared by Sinapi are crucial for the development of new social programs and research on a national scale. Monthly, at the beginning of the month, they reveal new relevant information about the value of the square meter, labor, etc.