The Extended National Consumer Price Index-15 - IPCA-15 changed 0.19% in December and stayed below the November´s rate (0.26%). This was the lowest IPCA-15 for December since 1998, when it registered 0.13%. As a result, the IPCA-E – which is the cumulative IPCA-15 – closed 2016 at 6.58%. In December 2015, the rate had been 1.18%.  The complete data of the IPCA-15 can be accessed here.

Three out of the nine groups of products and services surveyed dropped: Household articles (-0.52%), Housing (-0.28%) and Food and Beverages (-0.18%).

The drop in  Food and Beverages (-0.18%) was more intense than in the previous month (-0.06%).  Several products influenced this result, like carioca beans (-17.24%), potatoes (-15.78%), tomatoes (-10.58%) and long-life milk (-5.40%).

Even with the drop of its group, some food increased their price, particularly onions (6.50%), cassava flour (3.52%), whole chicken (1.62%) and soybean oil (2.55%).

The item electricity (-1.93%), from the group of Housing (-0.28%), exerted the major downward impact on the month´s index (-0.07 percentage points (p.p)). It was caused by the replacement of the yellow tariff flag by the green one on December 1st, eliminating the additional cost of R$1.50 per 100 kilowatt-hour consumed. Electricity fare also decreased by 7.52% in Porto Alegre, reflecting the reduction of 16.28% in the fare of one of the concessionaires since November 22. In Rio de Janeiro, the reduction of 11.37% in the fare of one of its concessionaires took place on November 7 and caused it to drop 6.16%. In Goiânia, the change of -1.76% was still due to the reduction of 8.83%, in force since October 22.

The drop in Household articles (-0.52%) was influenced by items TV, sound and computers (-2.41%) and household appliances (-1.08%).

Transportation (0.79%) recorded the highest group change, pressed by airfare (26.16%), which led the ranking of the major individual impacts (0.09 p.p.). The item traffic ticket (24.64%) also pressed, as penalties for traffic violation rose on November 1st by Federal Law no. 13,281, reflecting changes in the Brazilian Traffic Code - CTC Rising articles like vehicle insurance (2.94%), ethanol (1.89%), used cars (1.71%) and car licensing (0.81%) also influenced the result of this group.

Other highlights on the rise were: cigarettes (2.13%), excursion (0.94%), domestic workers (0.87%) and manpower for small repairs (0.87%).

The highest regional index was reported in Brasília (0.99%), whose airfare prices rose 21.30%, impacting 0.35 p.p. in the month´s result. The lowest index was posted in Goiânia (-0.22%), influenced by gasoline (-4.69%) and ethanol (-4.18%), as well as by the drop of 1.76% in the electricity fare, reflecting the reduction of 8.83% in force since October 22.

In order to estimate the IPCA-15, the prices collected from November 15 to December 13 (reference) were compared with the prices in force from October 14 to November 14 (base). The indicator refers to families 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, and also Brasília and 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.