Rent inflation ends the year at 23.14% and has the highest increase since 2002 | economy

It was the biggest advance of the IGP-M since 2002, when the index accumulated an increase of 25.31%.

• See in the webstories: 7 tips to renegotiate the rent

Throughout this year, the IGP-M was pressured by the devaluation of the real against the dollar and by the increase in the prices of raw materials. Among the three components of the index, the greatest pressure in 2020 was seen in the producer price index.

• OR Broad producer price index (IPA), as 60% non-IGP-M weight, recorded an advance of 31.63% in 2020;
• OR Consumer Price Index (CPI), with a weight of 30% in the IGP-M it rose 4.81%;
• OR National Index of Construction Costs (INCC), with a weight of 10% in the IGP-M, it rose 8.66%.

In December, the IGP-M increased 0.96%, which represented a slowdown in relation to what was observed in November (increase of 3.28%).

The result of the month was influenced by a fall in the price of raw materials, according to André Braz, coordinator of the price indices of the Brazilian Institute of Economics, of the Getulio Vargas Foundation (Ibre / FGV).

“Gross raw materials fell 0.74% in December. The main contributions to this movement came from raw materials: soybeans (11.91% to -8.93%), cattle (7.40% to -0.58 %).) and corn (21.85% to -2.17%) ”, said Braz by note.

“The prices of soybeans and corn continue to rise on international stock exchanges and such a movement may limit the magnitude of the falls in the next calculations,” he added.

For the producer, the major influences in December were iron ore (4.34%), diesel (7.8%) and beef (3.42%). For consumers, the pressure came from the residential electricity rate (8.59%), airfare (14.62%) and gasoline (1.26%).

Finally, the construction cost was influenced by carbon steel rods and wires (4.57%), iron and steel pipes and fittings (6.08%) and brick and ceramic tiles (3.82%).

Renegotiation of rents

This historical leap directly affects the rented families. But it is possible to negotiate a reduction in the rental price after 30 months of the contract or in the readjustment percentage, mainly tenants who lost their job or part of their income due to the crisis.

Real estate market analysts assure that there is room to renegotiate a lower increase in the value of the contract in the current scenario of economic crisis.

• Compare the value of your rent with that of neighboring properties.
• Gather documents that prove your income reduction.
• Reinforce that you are a good payer and take care of the property.
• Talk to your real estate agent about prepayment discounts.
• Submit other rates to readjust the rent to the owner.
• Suggest a fair amount of rent that you can pay on time.
• Show how you plan to pay the proposed rent on time for at least one year.

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