IPCA
Inflation accelerates to 0.56% in October, leveraged by rise in electricity
November 08, 2024 09h00 AM | Last Updated: November 08, 2024 02h31 PM
The Brazilian inflation accelerated to 0.56% in October, rising 0.12 percentage points (p.p.) in relation to the previous month (0.44%). The result was influenced by the rises in the group of Housing (1.49%), after an increase in the prices of residential electricity (4.74%) and in the group of Food and beverages (1.06%), leveraged by the increase in meat (5.81%). The cumulative inflation in the year is 3.88% and, in the last 12 months, 4.76%. The data are from the Extended National Consumer Price Index (IPCA), released today (8) by the IBGE.
In terms of impact on the overall index of October, both Housing and Food and beverages exerted an influence of 0.23 p.p. on the overall index, being residential electricity the sub-item that mostly pressed the result, with 0.20 p.p. of impact.
"The red tariff flag level 2 was in force in October, which adds R$7.87 to each 100 kWh consumed, whereas the red tariff flag level 1 was in force in September, which adds approximately R$4.46," highlights André Almeira, IPCA and INPC manager.
The group of Food and beverages rose 1.06%, with price increase in food at home, which changed from 0.56% in September to 1.22% in October. The prices of meat increased as well (5.81% and 0.14 p.p. of impact), highlighted by the following cuts: chuck steak (9.09%), rib (7.40%), sirloin steak (6.07%) and rump steak (5.79%).
"The increase in the price of meat can be explained by a lower supply of these products, due to the dry weather and a smaller number of slaughtered animals, as well as a higher volume of exports," explains Almeira. It was the highest monthly change for meat since November 2020, when the change had been 6.54%.
Having risen 0.65%, food away from home registered a higher change than in September (0.34%). The sub-item meals accelerated from 0.18% to 0.53%, whereas snacks accelerated from 0.67% to 0.88%.
On the other hand, the only drop recorded in October came from Transportation, with a rate of -0.38% and -0.08 p.p. of impact on the overall index. This result was mainly influenced by airfare, with a drop of -11.50% in the prices and -0.07 p.p. of impact on the overall index.
Trains (-4.80%), subway (-4.63%), urban bus (-3.51%) and transportation commuting (-3.04%) also contributed to the negative result of the group. The result of these sub-items is explained by the gratuities granted to the population in days of municipal election in October.
Concerning fuel (-0.17%), ethanol (-0.56%), diesel fuel (-0.20%) and gasoline (-0.13%) dropped, whereas vehicular gas (0.48%) rose.
Inflation stays on the the positive side in every locality surveyed
In regional terms, all the localities surveyed registered positive figures in October. The highest change occurred in Goiânia (0.80%), influenced by the rise in residential electricity (9.62%) and sirloin steak (6.53%). On the other hand, the lowest change occurred in Aracaju (0.11%), due to the retreats in gasoline (-2.88%) and urban bus (-6.22%).
INPC rises 0.61% in October
The National Consumer Price Index (INPC) rose 0.61% in October, 0.13 p.p. above the result recorded in September (0.48%). In the year, the INPC accumulates a rise of 3.92% and, in the last 12 months, of 4.60%, above the rate of 4.09% registered in the 12 immediately previous months. The rate had been 0.12% in October 2023.
Food products (1.11%) increased their prices for the second consecutive month, accelerating from 0.49% in September to 1.11% in October. On their turn, non-food products (0.45%) remained below the result of September (0.48%).
Concerning the regional indexes, Goiânia recorded the highest rise (0.94%), due to tomatoes (26.88%) and residential electricity (9.76%). The lowest change was reported in Aracaju (0.05%), due to the retreat in the prices of urban bus (-6.22%) and gasoline (-2.88%).
More about the surveys
The IPCA encompasses households with earnings between 1 and 40 minimum wages, whereas the INPC, households with earnings between 1 and 5 minimum wages, living in the Metropolitan Areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, as well as in the Federal District and in the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju. Please access the data on Sidra. The next result of the IPCA and INPC, relative to November, will be released on December 10.
