Lowest inflation for January since the creation of Real Plan
February 08, 2018 09h00 AM | Last Updated: February 08, 2018 04h55 PM
The Extended National Consumer Price Index - IPCA, which measures inflation, changed 0.29% in January compared with December last year, the lowest figure for January since the creation of the Real Plan. The cumulative inflation stayed at 2.86% in the last 12 months.
Of the nine groups that comprise the index, only the prices of wearing apparel and housing dropped, -0.98% and -0.85%, respectively. In wearing apparel, footwear (-0.98%), men’s wearing apparel (-1.12%), women’s wearing apparel (-0.93%) and children´s wearing apparel (-1.14%) dropped. According to Fernando Gonçalves, manager of the IPCA, "this result can be explained by some sales promotions that realigned the prices after the rise in the end of last year".
Electricity bill, which became 4.73% cheaper, was the item that mostly contributed to press the group of housing downwards, since the additional charge of R$0.03 per each kWh consumed – related to the red tariff flag level 1 in force in December – was suspended.
Transportation and food rise prices
Transportation was the group with the highest rise (1.10%), pressed by fuels (2.58%), especially gasoline (2.44%) and ethanol (3.55%), and by the adjustments in the urban (São Paulo, Salvador, Goiânia and Vitória) and intercity (Rio de Janeiro, Belo Horizonte, São Paulo, Salvador and Campo Grande) bus fares.
Despite its rise, Transportation reduced the increase in relation to the previous month, mainly influenced by the drop of 1.35% in the prices of airfare and of 0.74% in car repair. According to Fernando, “the price of airfare has been falling in January since 2014 for the national index, except for Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, Fortaleza, Salvador and Curitiba, which rose [in 2018]”.
Food and beverages prices also rose (0.74%). Food for consumption at home advanced from 0.42% to 1.12% and that consumed away from home decelerated from 0.74% to 0.06%. Among the items, tomatoes (45.71%) and potatoes (10.85%) stood out. "In November, the harvesting of tomatoes was anticipated due to climate issues. Therefore, the supply reduced in January and, thus, the prices rose", concluded the manager of the survey.
