The Getúlio Vargas Foundation (FGV) disclosed that the General Price Index – Market, also known as the IGP-M, responsible for the readjustment of most rental contracts in Brazil, is at the lowest monthly level since October 2019. The IGP-M is calculated monthly between the 21st of the previous month and the 20th of the current month.
In December 2022, an increase of 0.45% was recorded and, in January, the FGV points out that there was a deceleration of this value to 0.21%, driven by the price of raw materials and fuel.
In the last 12 months, the indicator has accumulated an increase of 3.79% – and this is the value that must be added in rent contracts with readjustment scheduled for February. That is, if your rent costs an average of R$ 1000, now the readjusted amount will be R$ 1037.90.
However, tenants can open a dialogue with their tenants in order to negotiate an increase mediation, studying case by case.
The IGP-M measures the readjustments of most leasing contracts that currently occur in Brazil. Known as “rent inflation”, the index also follows the variation in the prices of goods and services, the cost of raw materials used in agricultural and industrial production, wholesale prices and civil construction inputs.
Editing: Nicolau Soares
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