IPCA
IPCA hits 0.52% in December and has cumulative increase of 4.83% in 2024
January 10, 2025 09h00 AM | Last Updated: January 13, 2025 12h28 AM
In December 2024, the Extended National Consumer Price Index (IPCA) hit 0.52%, and stood above the November rate (0.39%), in spite of being below the rate of December 2023 (0.56%). As a result, the official inflation index closed the year with a cumulative increase of 4.83%, 0.21 percentage points (p.p.) above the IPCA in 2023 (4.62%) and 0.33 p.p. above the tarhet inflation set by the National monetary Council (CMN).
The main impacts on inflation in 2024 came from Food and Beverages, with a cumulative increase of 7.69% in 12 months and of 1.63 percentage points in the year. Also, cumulative increases in prices of Health and personal care (6.09%) and Transportation (3.30%) also accounted for significant negative impacts (of 0.81 p.p. and 0,69 p.p., respectively) on the IPCA of the year. Together, these three groups were responsible for 65% of the 2024 inflation.
Gasoline accounted for the main individual impact on inflation in 2024
About the 377 subitems whose prices are considered in the calculation of the IPCA, gasoline accounted for the main individual impact (0.48 p.p.) on inflation in 2024, with a cumulative increase of 9.71% in the year. health insursnce followed, rising 7.87% in 12 months and represented 0.31 p.p. in the IPCA of 2024. It was followed by the subitem Food away from home, with a cumulative increase of 5.70% in 12 months, with an impact of 0.20 p.p. on the IPCA in the year.
Another highlight was Ground coffee, which accounted for the fourth main impact on inflation last year (0.15 p.p.), and cumulative increase of 39.60% in 2024.
On the other hand, subitems with more volatile prices, such as Airfares, helped reduce the yearly IPCA, with a cumulative increase of 22.20% in 2024 and an impact of -0,21 p.p. on IPCA in 2024. Likewise, Tomato and Onion closed the year with a cumulative fall of prices (-25.86% and -35.31%, respectively) and both had the same impact (-0.07 p.p.) on inflation in 2024.
Fernando Gonçalves, manager of IPCA, says “the index was affected by the rise of food products, due to the influence of harsh climate conditions in several periods of the year and in different localities. Also, as in 2023, gasoline was responsible for the main contribution to the indicator in 2024”.
São Luiz recorded the highest cumulative inflation in 12 months
Among the 16 localities where the IBGE weekly monitors prices, São Luís (6,51%) had the highest cumulative inflation in 2024, mainly to the rise of (14.24%) and beef (16.01%). Belo Horizonte (5.96%) and Goiânia (5.56%) followed.
In the metropolitan area of São Paulo, which represents 32.28% of IPCA in the country, inflation in 2024 stood at 5.01%. In Rio de Janeiro, the third main item in the national IPCA among localities, inflation stood at 4.69% in 2024.
The lowest result was found in Porto Alegre (3.57%), under the influence of local drops in the prices of onion (-42.47%), tomato (-38.58%) and airfares (-16.94%).
INPC closes the year at 4.77%
The National Consumer Price Index (INPC), which measures the inflation of households with an income of at least five minimum wages, increased by 0.48% in December and stood at 0.15 p.p. above the result of November (0.33%). In December 2023, the INPC had been 0.55%. IThe INPC closed the year at 4.77%, mainly due to the group Food and beverages, which had a cumulative increase of 7.60% in 12 months, generating an impact of 1.83 p.p. on the IPCA of the year.
The second main impact on the INPC of 2024 (0.74 p.p.) came from Transportation, with a cumulative increase of 3.77% in2024.
According to Fernando Gonçalves, the groups of food and services behaved in a similar way in the two indexes, INPC and IPCA. “Differences can be found in the impact of some subitems, such as, for example, airfares, which have a lower impact on the budget of lowe income families.”
More about the survey
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 January, will be released on February 08.
