IPCA
IPCA decelerates to 0.16%, the lowest rate for January since 1994
February 11, 2025 09h00 AM | Last Updated: February 11, 2025 11h06 AM
In January 2025, the Extended National Consumer Price Index (IPCA) retreated to 0.16%, the lowest rate for January since the beginning of the Rela Plan in 1994. The index stayed 0.36 percentage points (p.p.) below the December´s rate (0.52%). As a result, the cumulative indicator in 12 months retreated to 4.56%.
The prices of the sub-item residential electricity retreated 14.21% and exerted the most intense negative impact (-0.55 p.p.) on the January´s IPCA. Fernando Gonçalves, manager of the IPCA, explains that "this drop was due to the incorporation of the Itaipu bonus, credit in the bills issued in January."
Residential electricity is part of the group of housing, which dropped 3.08% with an impact of -0.46 p.p. on the January´s IPCA.
Transportation and Food remain rising
The prices of the group of Transportation rose 1.30% and exerted an impact of 0.27 p.p. on the January´s IPCA, influenced by the rises in airfare (10.42%) and urban bus (3.84%).
The group of Food and beverages registered the fifth consecutive increase (0.96%) and contributed with 0.21 p.p. to the month´s index. In that group, food at home rose 1.07%, influenced by the rises in onions (36.14%), tomatoes (20.27%) and ground coffee (8.56%). On the other hand, the prices of potatoes (-9.12%) and long-life milk (-1.53%) retreated.
Food away from home decelerated from 1.19% in December to 0.67% in January. Both snacks (0.94%) and meals (0.58%) recorded lower changes than in the previous month (0.96% and 1.42%, respectively).
Aracaju registered the highest price rise
Among 16 localities where the IBGE follows up prices on a weekly basis, the highest change was held in Aracaju (0.59%), influenced by the rise in airfare (13.65%). In contrast, the lowest change was in Rio Branco (-0.34%), due to the retreat in residential electricity (-16.60%). Five out of 16 localities recorded negative changes in the January´s IPCA: Goiânia (-0.03%), Porto Alegre (-0.03%), São Luís (-0.08%), Curitiba (-0.09%) and Rio Branco (-0.34%).
INPC registered a null change (0.0%) in January.
The National Consumer Price Index (INPC), which measures the inflation of families with income up to five minimum wages, registered a null change (0.0%) in January. The cumulative index in 12 months stayed at 4.17%, below the rate of 4.77% of the 12 immediately previous months. The INPC had been 0.57% in January 2024.
Within the INPC, food products decelerated between December (1.12%) and January (0.99%), whereas non-food products retreated from 0.27% in December to -0.33% in January.
In regional terms, the highest change occurred in Salvador (0.47%), influenced by the rise in urban bus (6.00%) and, the lowest one, in Rio Branco (-0.49%), with the drop in residential electricity (-16.60%). Eight out of 16 localities surveyed recorded negative rates in the January´s INPC: São Luís (-0.04%), Campo Grande (-0.09%), Porto Alegre (-0.11%), Rio de Janeiro (-0.13%), São Paulo (-0.18%), Goiânia (-0.29%), Curitiba (-0.39%) and Rio Branco (-0.49%).
For Fernando Gonçalves, "the null change in the INPC, which indicates a stability between December and January, is an average, i.e., some prices rose, as in the food group, and other ones dropped, as in electricity."
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, relative to February, will be released on March 12.
