The Extended National Consumer Price Index (IPCA) of December 2008 increased by 0.28%, 0.08 percentage points below the rate of November (0.36%) and 0.46 percentage points below the rate of December 2007 (0.74%).  As a consequence, the IPCA of the year 2008 was 5.90%, the highest result since 2004 (7.60%) and 1.44 percentage points above the rate of 2007 (4.46%). As it had occurred in 2007, the IPCA of 2008 was influenced mainly by the hike of food products.

While from 2002 to 2006 a trend of decrease of the IPCA was recorded year after year, 2007 and 2008 recorded acceleration in the rate of growth of the index. After closing 2007 at 4.46%, the index accumulated in 12 months recorded an increasing trend during almost all the year of 2008, and the highest indexes were registered in May (0.79%) and June (0.74%).

The results showed a hike more concentrated in the first semester of the year, as a consequence of the influence of food products which had occurred in the second semester of the previous year.

Meals in restaurants was the major individual contribution for the IPCA of 2008

In 2008, the prices of food products increased by 11.11% a result above the value of 10.79% of 2007, representing the highest hike among the groups which form the IPCA.  Non-food products accounted for 4.46%, also above the value of 2007, when they had increased by 2.83%.

With participation of 22.76%, food products brought a considerable influence on the index of the year: 2.42 percentage points of contribution, which meant, 41% of the IPCA of 2008. The hike of food products was attributed basically to two factors: high prices of the quoted products in the international market; and increase of the demand for food products – domestic and international.  From the change of 11.11% of the group, 8.65% occurred in the first and 2.27% in the second semester.

The item meal in restaurant, with prices which increased 14.45% in 2008, brought the highest individual contribution in the index of the year: 0.55 percentage points. Following was meats, with hike of 24.02% and contribution of 0.49 percentage points.

Household employee was the third major contribution in the year

Among non-food products, the main contribution came from the group personal expenses (0.72 percentage points of the IPCA of 2008), which increased by 7.35% in the year.  The highlight was salaries of household workers, which increased by 11.04% and contributed with 0.34 percentage points.  This was the third major individual contribution for the index of the year.

Other relevant items were schools (4.75%), health plans (6.15%) and residential rents (6.92%).

On the other hand, some products contributed to reduce the IPCA in 2008, with negative rates.  Automobiles with decrease of 4.32% in used automobiles and 2.25% in new automobiles were the main influence of decrease in the general index, with – 0.14 percentage points.

Despite the decrease in the prices of gasoline, fuels closed 2008 with an increase of 0.55%, as a consequence of alcohol (1.06%) and gas for vehicles (23.41%).  The item contributed with 0.03 percentage points for the IPCA of the year, differently than the negative participation of -0.02 percentage points of 2007.

In 2008, the administered items had a contribution of 0.99 percentage points in the IPCA, compared to 0.51 percentage points in 2007.  Among them stood out the increases of fixed telephone (from 0.34% in 2007 to 3.64% in 2008), water and sewage accounts (from 4.82% to 7.11%) and medicines (from 0.54% to 3.96%).

In 2008, the metropolitan area of Belém had again the highest IPCA

As it had occurred in 2007, the metropolitan area of Belém recorded the highest IPCA accumulated in 2008 (7.95%), mainly due to increases which occurred in food products (12.74%). The lowest index came from Salvador (5.15%), as we may observe in the table below.

Prices of food products continued to decelerate in December

The prices of food products increased less from November to December: from 0.61% to 0.36%. Several items recorded lower increase of prices.  The highlight came from meats (from 2.53% in November, to 0.44% in December), which lost place to tomatoes in the leadership of the major contributions of the month.  With hike of 34.11%, after the 20.87% of November, the product turned 108.32% more expensive in the year and contributed with 0.06 percentage points in the formation of the IPCA in December.  Consequently tomatoes represented almost the total contribution of the group food products and beverages: 0.08 percentage points.

On the other hand, carioca beans, which changed -19.02%, brought a contribution of -0.06 percentage points in the IPCA, the lowest of the month.

The most significant hikes of food products came from the metropolitan areas of Rio de Janeiro and Recife, each one with increase of 1.13%.  The metropolitan areas of São Paulo (-0.04%), Porto Alegre (-0.03%) and Belo Horizonte (-0.01%) brought low decreases in the results of the group.

Regarding non-food products, the IPCA of December was 0.26%, near the result of 0.29% of November.  Apparel was the group with the major hike in the last month of the year, and continued to grow, changing from 0.71% in November to 0.99% in December.

On the other hand, household items (-0.04%) and transportation (-0.03%) had deflation.  Among the household items, almost all had lower changes from November to December, especially household appliances (from 0.32% in November to 0.01% in December) and TV and audio equipment (from 0.71% to -1.07%). 

The percentage of transportation (-0.03%) in December was a consequence, partly of the hike of 0,89% in the urban buses tariffs due to readjustments in the metropolitan areas of Rio de Janeiro (4.76% since December 16), Belo Horizonte (9.52% since December 29) and Belém (13.00% since December 20).  The tariffs of the inter-municipal buses also turned more expensive (from 0.31% in November to 1.33% in December) and inter-state (from 0.24% to 2.21%), besides air tariffs (from 0.73% to 1.31%).  With this, the item public transportation, which had recorded growth of 0.11% in November, changed to 0.94% in December. 

Meanwhile, the item, own vehicle recorded a more intense decrease from one month to the next (from -0.24% to -0.73%). The highlights were new automobiles (from -0.40% to -1.99%) and used automobiles (from -2.61% to -2.76%), besides gasoline (from 0.21% to -0.09%). 

Regarding the areas surveyed, the major result in December was registered in Rio de Janeiro (0.77%), where food products had the highest increase (1.13%) and the urban buses tariffs, 3.33%. Curitiba (-0.04%) recorded a low deflation.

IPCA has been calculated by IBGE since 1980 and it refers to families with monetary income, from any source, ranging from 1 to 40 minimum wages.  It covers nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília. To calculate the index of the month prices collected from November 27 to December 29 (reference period) were compared to those charged from October 30 to November 26 (base period).

INPC of December increased by 0.29% and accumulated 6.48% in 2008

The National Consumer Price Index (INPC) increased by 0.29% in December, a result 0.09 percentage points lower than the one of November (0.38%), closing the year of 2008 in 6.48%. In December 2007, the index had been 0.97%.

In 2008, food products increased by 11.40%, while non-food products increased by 4.47%.  In 2007, the result of the year had been 5.16%, with hike of 11.91% in food products and 2.63% in non-food products.

Among the indexes by areas, in 2008, the highest was observed in Belém (8.40%), and the lowest in Belo Horizonte (4.92%). 

In December of the previous year, the increase of 0.29% of the INPC resulted from the indexes of 0.12% of food products and 0.36% of non-food products, with changes in November of respectively 0.50% and 0.33%.

Regarding the areas surveyed, the highest result was recorded in Rio de Janeiro (1.04%), where food products recorded the highest increase (0.86%) and the urban buses tariffs increased by 3.33%. Curitiba (-0.04%) recorded a slow deflation.

INPC has been calculated by IBGE since 1979, it refers to families, headed by a salaried worker, with monetary income ranging from 1 to 6 minimum wages. It covers nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília. To calculate the index of the month prices collected from November 27 to December 29 (reference period) were compared to those charged from October 30 to November 26 (base period).