Driven by food and transportation, inflation is 0.45% in October

Section: Economic Statistics | Rodrigo Paradella | Design: Marcelo Barroso

November 07, 2018 09h00 AM | Last Updated: November 07, 2018 03h16 PM

Strongly influenced by food, beverages and transportation, inflation reached 0.45% in October, the highest index for the month since 2015, when it stood at 0.82%. The Extended National Consumer Price Index (IPCA), released today by the IBGE, also registered a cumulative inflation in the year of 3.81%, while the increase in prices in the last 12 months was 4.56%.

"This index had a small deceleration compared to last month's (0.48%) and the behavior that caused this movement was practically the same. It's the biggest October since 2015," said survey manager Fernando Gonçalves.

"Food went up. Tomatoes, for instance, were up 51.27%. And Transportation, although down compared to September, had a high. Fuels alone, with 2.44%, accounted for almost a third of this month's IPCA. Housing is an important group and also rose, as well as electricity," said Fernando.

Together, the groups Food and beverages (0.59%) and Transportation (0.92%) accounted for 71% of the inflation in October. The other groups had lighter changes and were between the 0.02% of Communication and the 0.76% of Household Articles.

The increase in Food and beverages was mainly driven by food at home (0.91%), mainly tomatoes (51.27%), potatoes (13.67%), whole chicken (1.95%) and meat (0.57%). In Transportation, ethanol (4.07%), diesel oil (2.45%), gasoline (2.18%) and vehicular gas (0.06%) rose. Airfares also slowed but remained 7.49% more expensive in October.

Regionally, the highest index was with the metropolitan area of Porto Alegre (0.72%), while the lowest index (0.21%) was registered in the metropolitan areas of Recife and Rio de Janeiro.

"Porto Alegre had a strong rise in tomatoes and gasoline. The areas with the lowest changes were Recife and Rio. In Recife, the highlight was electricity and snacks. In Rio, the falls were in the long-life milk and food away from home," Fernando explained.

The National Consumer Price Index (INPC) was 0.40% in October, 0.10 pp above the September rate (0.30%). Just as the IPCA, the result has also been the highest for a month in October since 2015, when the INPC stood at 0.77%. The cumulative over the year was 3.55%, and in the last 12 months, 4.00%.