The Extended National Consumer Price Index – IPCA changed by 0.36% in December. The index accumulated in 2005 was 5.69%, 1.91 percentage points below the result of 2004 (7.6%). Among the groups of products surveyed by IBGE, Transportation (8,07%)...

The Extended National Consumer Price Index – IPCA changed by 0.36% in December. The index accumulated in 2005 was 5.69%, 1.91 percentage points below the result of 2004 (7.6%). Among the groups of products surveyed by IBGE, Transportation (8.07%) underwent the biggest price change in 2005, and Food Products and Beverages (1.99%), the smallest.

IPCA accumulated 0.36% in December

In December, IPCA changed by 0.36% and was below the October rate (0.55%). The reduced rise of Transportation (from 0.66% to 0.24%) and of Food products prices (from 0.88% to 0.27%), caused the deceleration of the increase of IPCA from November to December.

Gasoline, airplane tickets and urban bus fares were the main items which caused the rate of Transportation to decrease. After being up in September (3.36%) and October (4.17%), gasoline (-0.18%) had slight fall, resulting from readjustments, besides the residual change of 0.83% in November. Airplane tickets, which had risen by 5.04% in November, changed to 0.90%, whereas urban bus fares had their rise rate reduced from 0.64% to 0.24%. Alcohol, on the other hand, with the influence of readjustments effected by distributors, became 4.53% more expensive to the consumer, after a change of 2.52% in November.

The group Food products and beverages fell due to the presence of meats (from 1.78% to 0.41%), chicken (from 1.22% to –1.34%) and non-industrialized products such as tomatoes (from 36.03% to –0.08%) and onions (from 18.03% to –1.57%). Potatoes (from 43.89% to 31.38%) is worth being mentioned for its rise, even despite the fall over the month.

IPCA has been calculated by IBGE since 1980. It refers to families with monetary income, from whatever source, ranging from 1 to 40 minimum salaries and encompasses nine metropolitan areas in the country, besides Brasília and the municipality of Goiânia.

Indexes by Area

Among the areas surveyed, the highest index was registered in Fortaleza (0.66%) and the main contributors to it were the items: inter-city buses (8.06%), water and sewage treatment fares (5.90%), and condominium taxes (2.14%). The lowest index was registered in the metropolitan area of São Paulo (0.26%).

IPCA accumulated was 5.69% in 2005

IPCA changed by 5.69% in 2005 and was 1.91 percentage points below the result of 2004 (7.60%). The reduction in the rate over the year was caused, basically, by the same factors which caused fall from 9.30% in 2003, to 7.60% in 2004.

• Good offer of agricultural products

, despite the decrease of 5.5% in the 2005 harvest over the previous year. Some food products which are important to family consumption became cheaper; one example was rice, which fell by 21.45% and accounted for the main individual negative impact in the year: 0.18 percentage points.

• Relevant influence from currency exchange

, maintaining stability of prices of some products such as personal hygiene items (0.31%) and contributing to the reduction of the prices of others, for example, television sets, sound systems and computer equipment (-8.49%). This way, together with the good harvest in the year, currency exchange affected prices of agricultural products relevant to the international market. Soybean oil got 17.21% cheaper and flour, 6.91%.

On the other hand some items exerted negative influence on the annual result:

• Rises in urban bus fares

– urban bus fares (10.44%) accounted for the main impact on the index, 0.52 percentage points, in spite of fall in Curitiba (-11.05%) and stability in Porto Alegre and Brasília. Being under municipal administration, urban buses, a relevant item in the family budget, rose by 4.74% in 2004, a moderate rise in comparison with the annual index that year (7.60%).

• Rises of international petroleum prices

, causing at least once the readjustment in refineries (10.00%) on September 10. As a consequence, the liter of gasoline became 7.76% more expensive. However, three readjustments in the year, together with the rise of alcohol (31.58%), caused gasoline to reach 14.64% of rise in 2004. It was the major impact that year (0.59 percentage points).

• Rises in the salaries of domestic employees

, which rose by 11.52% as a consequence of the minimum salary (15.38%)

• Rises in taxes for important public services

, such as electricity (8.03%) and fixed telephony (6.88%). Even so, most of the public services were below the results observed in the previous year.

Considering the last four years, it is observed that, in comparison with the last twelve months, the year of 2002 had growing taxes, basically due to the effect of the rise of the dollar. The year ended with an annual rate of 12.53%, the highest figure since 1995. Year 2003, considering the twelve-month analysis, also presented high rates due to the influence of the dollar over consumer prices, and the resulting index was 9.30%, with the effects of the devaluation of the national currency in the last few months of the year.

The index in 2004 was 7.60% and it showed little influence of the effects of the rise of the dollar. In 2005, the lowest result was registered in June (-0.02%), indicating that, on the average, the prices of items for family consumption were practically stable. April had the highest index (0.87%), due to the concentration of price rises of food products and items such as urban bus fares, medicines and electricity.

Among the groups, the expenses with transportation were the ones which most increased: 8.07%. Food products and beverages had the lowest result: 1.99%.

Food products

Food products

had a rate of 1.99%, extremely below the index of the year. Some of the non-industrialized products presenting the highest rates were: tomatoes (50.00%), carrots (38.03%) and potatoes (35.50%). Most of them, however, had moderate increases such as chicken (2.12%) and meats (0.97%). Others fell, for example, rice (-21.45%), which was the most relevant negative impact on the annual index: -0.18 percentage points.

Considering the change by 1.99%, the first semester accounted for 2.33% and the second, for –0.34%. n 2004 the change was 3.86%, being 2.08% in the first semester of the year and 1.75% in the second one.

Non-food products

The prices of non-food products rose by 6.77% in 2005; 3.40% in the first semester and 3.26% in the second. In 2004, the hike was 8.74%, with 3.90% in the first semester and 4.65% in the second one. The major individual impact on the annual index was that of urban bus fares (10.44% and 0.52 percentage points). Also relevant were the contributions from electricity (8.03% and 0.37 percentage points) and the salaries of domestic employees (11.52% and 0.35 percentage points).

Gasoline

had only one readjustment in the year and rose by 7.76%. This percentage was below the 2004 figure, when the increase was 14.64%. The index for fuel alcohol was 5.64%, extremely below the rate of the previous year (31.58%). As for cooking gas, which had risen by 7.15% before, the index was practically constant in 2005, 0.25%.

Indexes by area

The metropolitan area of Recife (7.10%) had the highest index, due, mainly, to the increases occurred in the prices of electricity (28.00%) and food products (3.75%). Curitiba had the lowest index (4.79%).

INPC was 0.40% in December

The National Consumer Price Index – INPC changed by 0.40% in December, a rate below that registered in November (0.54%). The deceleration of the rate over the month is attributed, mainly, to the reduction of the rate for the group Transportation, which changed from 0.74% to 0.36%. Even so, the index for the group of non-food products was 0.42%, similar to the November figure (0.43%). In relation to food products, prices fell from 0.81% to 0.35% and also contributed to the deceleration of the index.

INPC ended the year with a rate of 5.05%. Food products accounted for 1.43%, whereas non-food products increased by 6.59%. In 2004, the annual result was 6.13%, with hike of 2.92% for food products and of 7.565 for non-food products. The results by group were:

The highest index by area was registered in Recife (0.84%). The lowest result was that of São Paulo (0.17%).

INPC has been calculated by IBGE since 1979. It refers to families whose monetary income, from any source, ranging from 1 to 8 minimum salaries with a salaried worker as head of the household. It encompasses nine metropolitan areas in the country, besides Brasília and the municipality of Goiânia.