Inflation preview up 0.52% in December and closes 2022 at 5.90%
December 23, 2022 09h00 AM | Last Updated: December 23, 2022 10h13 PM
The Extended National Consumer Price Index (IPCA) 15 increased by 0.52% in December and closed 2022 with a cumulative change of 5.90%. In 2021, the inflation preview was 10.42%, the highest for a year since 2015. IPCA-E for the fourth quarter was 1.21%. The data were released today (23) by the IBGE.
Seven of the nine groups of products and services recorded increases in December. Transportation (0.85%) and Food and beverages (0.69%), with 0.17 p.p. and 0.15 p.p., respectively, acoounted for the main impacts. Wearing apparel (1.16%) recorded the highest change, and closed the year recording the highest cumulative increase (18.39%) among the groups.
It is also worth mentioning the results of Heath and personal care (0.40%), which decelerated from November (0.91%), and Housing (0.40%), whose change was similar to that in the previous month (0.48%). The other groups stood between the drop of 0.46% of Household appliances and the rise of 0.39% of Personal expenses.
The group Transportation accelerated from November (0.49%) to December (0.85%), mainly due to the rise of prices of airfares (0,47%), which had fallen by almost 10% in the previous month. The prices of fuels (1.79%) remained on an upward trend, although the result was below what was observed in November (2.04%). Gasoline (1.52%) accounted for the main individual impact on the monthly index, 0.07 p.p., whereas ethanol (5.44%) recorded the biggest change among the types of fuel surveyed. The prices of diesel (-1.05%) and vehicle gas (-1.33%) fell in December.
In the year, food products accounted for the main impact on the IPCA-15
On top of the list of main impacts in 2022 is Food and beverages, with 2.47 p.p. and an increase of 11.96%. The prices of food for consumption in the housing unit rose 0.78% from November to December, due to rises of onion (26.18%) and tomato (19.73%). In the last three months, the cumulative changes of these two products were 52.74% and 49.84%, respectively.
Also, the prices of rice (2.71%) and meat (0.92%) also rose in December, and accounted for the hike in this group. As for decreases, long life milk (-6.10%) stood out, with a decrease for the fourth consecutive month. In spite of the decrease, the product closed the year of 2022 with an increase of 25.42%. The result of Food away from home was closed to that in November (0.40%). Snacks rose 0.88% and meals, 0.28%.
In the group Wearing apparel (1.16%), all the items recorded increase. Women’s apparel (1.54%) and men’s apparel (1.47%), both with 0.02 p.p accounted for the main contributions. The prices in this group rose every month in 2022, with the highest increase in April (1.97%) and the lowest, in August (0.76%), and it accounted for the third main impact in 2022 (0.78 p.p.).
Health and personal care (0.40%), number two in the ranking, having accounted for 1.38 p.p. had its deceleration caused, to a great extent, by the items personal hygiene, which went from a rise of 1.76% in November to 0.04% in December, close to stability. Prices of products for nailcare (-5.05%), perfumes (-1.54%) and skincare products (-1.39%) recorded decrease. As for rises, health insurance (1.21%) stands ou once more, as it includes the monthly share of proce adjustments for old and new contracts in the period 2022-2023.
In Housing, the main contribution came from residential electricity (0.87%), with 0.03 p.p. The changes in the areas surveyed ranged between -0.71% in Rio de Janeiro and 18.78% in Brasília, where fares per kWh rose 21.54% on November 3. In Porto Alegre (1.74%), there was price adjustment (3.62%), in force since November 22, in one of the concessionaires surveyed.
Also in Housing, a highlight is the rise of water and sewage fares (0.83%), which resulted from price aadjustments of 11.82% in Rio de Janeiro (9.00%), in force since November 8, and of 10.15% in Belém (.,62%), in effect since November 28. Piped gas (-0.45%) recorded a decrease, as a consequence of the reduction by 2.47% of fares in Rio de Janeiro (-1.41%), in force since November 1st.
All the areas recorded increases in December
As for regional indexes, all the areas surveyed recorded increases in December. The highest change was reported in Goiânia (0.89%), due to the rises in gasoline (2.74%), electricity (4.13%) and tomato (33.75%). The lowest result, in turn, was that of Salvador 0.36%), affected by the decrease of 3.50% of gasoline prices.
In order to estimate the IPCA-15, prices collected from November 15 to December 13, 2022 (reference) were compared with those in force from October 14 to November 14, 2022 (base). The indicator refers to households with monthly income of 1 to 40 minimum wages and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, besides Brasília and the municipality of Goiânia. The methodology is the same as the one used for the IPCA; the difference lies in the period of price collection and in the geographic coverage.