FGV admits preliminary study to replace IGP-M in rental contracts

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Economist and professor at the Getulio Vargas Foundation (FGV) Paulo Picchetti said on Monday, 5, that the institute is studying a new indicator to replace the General Price Index – Market (IGP-M) on the basis of calculating rental contracts. in the country. In the midst of the Covid-19 pandemic and the currency devaluation, the IGP-M took a leap, and has already accumulated 31.12% in the 12 months concluded in March.

The expectation is that, at least, the index will close again at the 23% mark calculated in 2020.

“FGV is studying this. We are in the preliminary phase of studies to find partners and methodology for a new rental index. However, from a legal point of view, it will not be an index to be adopted with force of the readjustment law ”, explains Picchetti, remembering that the IGP-M“ was never ”created to correct rental contracts.

Picchetti recalls that the data started to be used as a parameter in rental contracts in the 80s and 90s, when the country had monstrous inflation figures. “It was a market thing. It was adopted at the time of hyperinflation because it was the index that protected contracts against the exchange rate. At the time, the safest assets were in foreign currency and real estate, ”he says.

The professor and also coordinator of the Weekly Consumer Price Index (IPC-S) at FGV, says that there is still no date set for the creation of the indicator.

According to the economist, the main difficulty is to find information on actual contract values. “It is a big challenge to find a reliable transaction value to have an index based on that. It involves a series of issues that go beyond the legal ones, there are factors of confidentiality, logistics… We have no date forecast, this is not under our control, it depends on the partners ”, he says.

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