September 2015 Second 10-day Period –December March 2014 Second 10-day Period – March 2016 2014

IGP-10 records a 0.20% change in December The General Price Index – 10 (IGP-10) recorded a 0.20% change in December, compared to 0.06% in November. In December 2015, the change rate was 0.81%. In 2016, the IGP-10 recorded a 6.95% increase. In 2015, the index rate increased 10.54%. The IGP-10 is calculated based on prices collected between the 11th day of the previous month and the 10th day of the reference month. The Broad Producer Price Index (IPA) recorded a 0.22% change in December. In November, it fell by 0.06%. The index related to Finished Goods recorded a 0.44% decrease in December, compared to a 0.57% decrease in November. The main influence to this decrease was the natural foods subgroup, from minus 8.33% to minus 5.52%. The Finished Goods (ex) index, which is calculated without the subgroups natural foods and fuels, recorded a 0.17% change. In November, the change rate was 0.36%. The Intermediate Goods index fell by 0.19%, compared to minus 0.26% in November. Four of the five subgroups increased, with highlight to supplies, from minus 0.71% to 1.90%. The Intermediate Goods (ex) index, obtained after the exclusion of production fuels and lubricants, recorded a 0.55% change. In the previous month, it fell by 0.05%. The index related to Crude Goods recorded a 1.41% change. In November, the rate was 0.76%. Leading the way up were: iron ore (5.39% to 14.94%), soy (grain) (minus 2.30% to minus 0.34%) and copper ore (0,00% to 6.50%). Leading the way down were: corn (grain) (minus 1.28% to minus 6.98%), manioc (yuca) (10.57% to 2.77%) and bovines (1.19% to minus 0.84%). The Consumer Price Index (IPC) recorded a 0.09% change in December, compared to 0.35% in November. Four of the eight expense categories comprising the index decreased, particularly Housing (0.36% to minus 0.36%). Within this expense category the highlight was residential electricity tariff (0.60% to minus 3.30%).

FGV-IBRE

General Price Index – IGP-10

The following groups also decreased: Transportation (0.89% to 0.19%), Communication (0.80% to minus 0.04%) and Apparel (0.36% to minus 0.10%). Within these expense categories, the highlights were: gasoline (1.64% to minus 0.44%), mobile telephone tariff (1.24% to 0.03%) and clothes (0.28% to 0.07%), respectively. However, the rates for the following groups increased: Education, Reading and Recreation (0.29% to 0.93%), Food (minus 0.11% to 0.00%), Miscellaneous Expenses (0.13% to 0.54%) and Health and Personal Care (0.51% to 0.54%). Within these expense categories, the highlights were: airline ticket (4.20% to 21.81%), dairy products (minus 5.01% to minus 1.94%), cigarettes (minus 0.40% to 1.11%) and perfume (0.11% to 0.96%), respectively. The National Construction Cost Index (INCC) recorded a 0.31% change in December, compared to 0.16% in November. The index related to Materials, Equipment and Services recorded a 0.05% change in December. In November, it fell by 0.06%. The cost index related to Labor recorded a 0.52% change in December. In the previous month, the rate was 0.35%.

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General Price Index – IGP-10

Table 1 – General Price Index and Components – Percentage Change December 2016 Percentage Change Item

Base Index Aug/94100

Cumulative Previous Month

Month Year

12 Months

GENERAL PRICE INDEX – 10

671.150

0.06

0.20

6.95

6.95

I P A – ALL ITEMS

744.339

-0.06

0.22

7.30

7.30

Finished Goods

626.723

-0.57

-0.44

7.84

7.84

Intermediate Goods

679.260

-0.26

-0.19

0.90

0.90

Crude Goods

981.401

0.76

1.41

14.39

14.39

Agricultural Products

1228.104

-1.04

-1.51

13.18

13.18

Industrial Products

600.204

0.34

0.91

4.94

4.94

Finished Goods (ex)

422.417

0.36

0.17

7.41

7.41

Intermediate Goods (ex)

610.439

-0.05

0.55

2.70

2.70

521.920

0.35

0.09

6.44

6.44

Food

501.302

-0.11

0.00

8.34

8.34

Housing

666.952

0.36

-0.36

3.09

3.09

Apparel

217.192

0.36

-0.10

3.39

3.39

Health and Personal Care

547.991

0.51

0.54

10.13

10.13

Education, Reading and Recreation

656.664

0.29

0.93

9.82

9.82

Transportation

491.995

0.89

0.19

5.19

5.19

Miscellaneous Expenses

515.642

0.13

0.54

9.87

9.87

Communication*

113.846

0.80

-0.04

4.89

4.89

679.710

0.16

0.31

5.84

5.84

Materials, Equipment and Services

517.797

-0.06

0.05

2.66

2.66

Labor

902.470

0.35

0.52

8.68

8.68

STAGES

ORIGIN

SPECIAL SERIES

I P C – ALL ITEMS

I N C C – ALL ITEMS

Source: FGV/IBRE Finished Goods (ex) - excluding natural foods and consumer fuels Intermediate Goods (ex) - excluding production fuels and lubricants * Base: February 2012=100

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General Price Index – IGP-10

Table 2 – Major Positive and Negative Influences December 2016 Percentage Change Item Previous Month

Month

5.39 2.74 5.26 1.12 0.42

14.94 2.09 4.30 11.31 1.26

4.20 1.03 0.34 0.44 -4.27

21.81 1.02 0.52 0.49 9.82

0.23 0.25 0.06 0.30 0.23

0.67 0.53 4.66 0.46 0.87

-3.00 -1.28 -7.78 5.68 -25.66

-8.70 -6.98 -8.30 -26.86 -12.00

0.60 -3.07 -12.16 -11.98 5.02

-3.30 -15.74 -16.46 -4.57 -13.58

-1.11 -0.88 -0.60 0.06 -0.07

-0.90 -0.80 -0.82 -0.11 -0.15

MAJOR POSITIVE INFLUENCES BROAD PRODUCER PRICE INDEX Iron ore Sugarcane Coffee (grain) Banana Passenger cars CONSUMER PRICE INDEX Airline ticket Health plan and insurance Meals at bars and restaurants Residential rent Lady's finger banana NATIONAL CONSTRUCTION COST INDEX Expert assistant Hod carrier Electrical conductors Construction worker Plumber

MAJOR NEGATIVE INFLUENCES BROAD PRODUCER PRICE INDEX Diesel oil Corn (grain) Raw milk Potatoes Beans (grain) CONSUMER PRICE INDEX Residential electricity tariff Tomatoes Carioca beans Long shelf life milk Potatoes NATIONAL CONSTRUCTION COST INDEX Rebars and carbon steel wire Portland Cement Type I Spackle - PVA Mortar 3x3 leg /stanchion Source: FGV/IBRE

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