Inflation exceeds middle of the target and hits 4.31% in 2019
January 10, 2020 09h00 AM | Last Updated: January 10, 2020 01h23 PM
According to the Extended National Consumer Price Index (IPCA), released today (10) by the IBGE, the official inflation closed the year of 2019 at 4.31%. The rate surpassed the target core of 4.25%, but within the change margin of 1.5 p.p. upward or downward, established by the National Monetary Fund (CMN). In other words, inflation could range between 2.75% and 5.75%. In 2018, the IPCA was 3.75%.
Food and beverages were the group with greatest relevance in the Brazilian household budgets last year. The increase of 6.37% was pushed , mainly, by meats, whose prices hiked in the domestic market due to the increase in exports to China and the devaluation of the real.
“The highlight was the meat sector, with a cumulative change in the year of 32.40%, concentrating the biggest part of the price increase in last two months (27.61%). Owing to the adjustment allowed by the National Regulatory Agency for Private Health Insurance and Plans – ANS, the rise in health insurance (8.24%) was relevant. Food away from home also influenced the index, due to the rise in meats”, says the IPCA manager, Pedro Kislanov.
Out of the nine group of expenses surveyed, only household articles had deflation (-0.36%) in 2019. The other groups recorded the following inflation indexes: food and beverages (6.37%), housing (3.9%), wearing apparel (0.74%), transportation (3.57%), health and personal care (5.41%), personal expenses (4.67%), education (4.75%) and communication (1.07%).
Regarding the metropolitan areas and capitals that were surveyed by the IBGE, Belém recorded the highest cumulative inflation in 2019 (5.51%), also due to the rise of meat prices. The metropolitan area in the capital of Pará was followed by Fortaleza (5.01%), Campo Grande (4.65%), São Paulo (4.60%) and Goiânia (4.37%), all of them above the national average.
The lowest inflation rate was observed in Vitória (3.29%), influenced by the decrease in electricity. The other low indexes were recorded in Recife (3.71%), in Brasília (3.76%), Rio Branco (3.82%) and Salvador (3.93%).
December records the highest inflation since 2002
The meat price also pushed the high in IPCA, which stood at 1.15% in December, above the 0.51% recorded in November. According to Mr. Kislanov, it was the highest result for December since 2002, when the inflation was 2.10%.
“This month had other hikes, with a highlight to fuels (3.57%) and airfare, which rose from 4.35% in November to 15.62% in December. Owing to the adjustment in games of chance (12.88%), in force since November, gambling also have impacted inflation in December”, says the IPCA manager.
The IPCA, calculated by the IBGE since 1980, refers to families with monthly income of one to 40 minimum wages, who live in the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, besides the Federal District and in the municipalities of Goiânia and Campo Grande. The index celebrated its 40th anniversary this month. Check out the special article at Lenses.doc.
INPC above IPCA
The IBGE also reported today (10) that the National Consumer Price Index (INPC), used as a reference for salary adjustment, closed 2019 with a high of 4.48%, above the 3.43% of 2018. In December, the index, calculated based on the budget of families that receive from one to five minimum wages, changed 1.22%. It was the highest result for the month since 2002, when it had recorded 2.70%.