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Rents maturing in July will be adjusted by 35.75% – News

O IGP-M (General Price Index – Market), used to correct most rental contracts in Brazil, maintained its upward trajectory started more than a year ago and rose 0.6% in June. The variation represents a deceleration in relation to the 4.1% jump registered in May.

With the variation, released this Tuesday (29), by the FGV (Fundação Getulio Vargas), the index accumulates high of 15.08% in 2021 and gain of 35.75% in the last 12 months.

This means that tenants who currently pay a rent of R$1,500 will have to pay R$2,036 (+R$536.25) every month to continue living in the same property. To avoid significant adjustment, experts recommend renegotiation directly with the property owner.

The accumulated percentage to be applied in lease contracts maturing in July corresponds to a level 1.29 percentage points lower than the readjustment of contracts that expired in this month of June (37.04%). The deceleration in the accumulated index is the first since May 2020, when the IGP-M moved to 6.51%, compared to 6.68% in the previous month.

The coordinator of the FGV price indices, André Braz, explains that the deceleration of the IGP-M occurs with the combination between the appreciation of the real and the decline in commodity prices (raw materials) quoted in dollars.

“The combination made the group of raw materials fall 1.28% in June, compared to a high of 10.15% last month. With this movement, the IPA rate [Índice de Preços ao Produtor Amplo] registered a significant deceleration, closing the month with a high of 0.42%”, says Braz.

Inflation adjustment

Given the difference between the indicators, some real estate companies have already started to use official inflation to readjust the new rental contracts. A proposal for change was presented to the Chamber by deputy Vinicius Carvalho (Republicanos-SP), but collides with the interest of shopping malls and finance companies that manage real estate funds.

The government is also against the proposal of change by understanding that it establishes an “undue interference by the State”. The assessment is that the use of the IPCA for adjustments would cause a lot of legalization, a large part of the contracts would not be renewed, and the average lease price would tend to rise.

The calculation of the IGP-M takes into account the variation in the prices of goods and services, as well as raw materials used in agricultural, industrial and civil construction production. Therefore, the variation is different from that presented by official inflation, which calculates prices based on a basket of goods determined for families with an income of up to 40 minimum wages.


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