Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
IGP-M 2025 Deflation Reduces Pressure on Rent Adjustment, According to Data from Fundação Getulio Vargas.
The IGP-M 2025, an index widely used as a reference for rental inflation, ended the year with a deflation of 1.05%, according to data released by Fundação Getulio Vargas.
The indicator recorded a decrease of 0.01% in December, after reporting an increase in the previous month, reflecting a scenario of economic slowdown, reduced wholesale costs, and improved agricultural yields.
The result was observed throughout the country and directly impacts rental contracts, public tariffs, and service agreements.
-
A new Brazilian shopping center worth R$ 400 million will be built in an area equivalent to more than 4 football fields, featuring 90 stores, 5 cinemas, a supermarket, a college, and parking for 1,700 cars, potentially generating 3,000 jobs.
-
Larger than entire cities in Brazil: BYD is building a 4.6 km² complex in Bahia with a capacity for 600,000 vehicles per year, but the discovery of 163 workers in conditions analogous to slavery has shaken the entire project.
-
With an investment of R$ 612 million, a capacity to process 1.2 million liters of milk per day, Piracanjuba inaugurates a mega cheese factory that increases national production, reduces dependence on imports, and repositions Brazil on the global dairy map.
-
Brazilian city gains industrial hub for 85 companies that is equivalent to 55 football fields.
Right at the beginning of 2025, price dynamics began to indicate less inflationary pressure throughout the production chain.
As a consequence, the index ended the year with behavior opposite to that observed in previous periods of strong increases, especially during times of economic instability.
IGP-M Deflation Reflects Economic Slowdown and Drop in Wholesale Prices
The IGP-M deflation throughout 2025 is directly related to the weakening of global economic activity.
This scenario limited the transfer of costs by companies, especially in the productive sector, reducing prices for producers.
In addition, the recovery of agricultural yields throughout the year contributed to the drop in raw material prices.
As a result, the index began to record more consistent declines, especially in components related to wholesale prices, which hold greater weight in the composition of the indicator.
IPA Drives Decline of the IGP-M 2025 and Accumulates Significant Decrease
The Broad Producer Price Index (IPA), responsible for 60% of the IGP-M 2025 calculation, fell 0.12% in December.
This shift reversed the increase of 0.27% recorded in November and consolidated a cumulative decrease of 3.35% for the year.
Within the IPA, raw materials dropped 0.30% in the last month of 2025.
Intermediate goods also showed a decline, while final goods increased by 0.07%, lower than the variation observed previously.
This behavior reinforces the central role of wholesale prices in the deflation of the index.
CPI Remains Moderately Rising Despite IGP-M Deflation
While wholesale prices helped pull the IGP-M deflation, consumer prices followed a different trajectory.
The Consumer Price Index (CPI), weighted at 30% in the calculation, rose 0.24% in December, slightly below the rate recorded in November.
Throughout 2025, the CPI accumulated moderate increases, with pressures concentrated mainly in the services and housing sectors.
In December, five expenditure groups experienced slowdown or decline, such as health, clothing, food, and communication.
On the other hand, housing, education, recreation, and transportation recorded acceleration in the month, contributing to keep consumer inflation at a positive level, even with the general index decline.
INCC Maintains Increase and Pressures Construction Costs
Another relevant component of the IGP-M 2025 is the National Construction Cost Index (INCC), which accounts for 10% of the indicator.
In December, the INCC rose 0.21%, slowing down compared to the previous month.
Over a 12-month period, the index advanced 6.01%, reflecting persistent pressures in the construction sector.
Material costs eased, but expenses with services and labor accelerated, influenced by wage adjustments and increased operational costs.
Rent Adjustment: Does IGP-M Decline Automatically Reduce Values?
Despite the IGP-M deflation in 2025, this does not necessarily mean an immediate decrease in rental prices.
Rent adjustments generally occur once a year, based on the accumulated variation over the past 12 months.
When the index is negative, the adjustment may be lower or even result in a decrease in value, provided that such a possibility is stipulated in the contract.
In practice, however, many more recent contracts have started to use the IPCA as a benchmark, which is on an upward trajectory.
Additionally, factors such as supply and demand for properties, contract renegotiation, and prices practiced in the real estate market also influence the final rental value.
Therefore, even with the IGP-M 2025 declining, rental costs may continue to rise in certain regions.
IGP-M Remains a Strategic Reference for the Economy
Calculated monthly by Fundação Getulio Vargas (FGV), the IGP-M tracks price variation in wholesale, retail, and construction sectors.
The index remains an important reference for rental contracts, public tariffs, electricity, telecommunications, and various services.
With the closing of 2025 in deflation, the indicator signals a less pressured economic environment, although the impacts on consumers depend on additional factors.
Thus, the IGP-M 2025 concludes the year as a relevant thermometer for understanding the directions of rental inflation and the real estate market in Brazil.
Seja o primeiro a reagir!