The Extended National Consumer Price Index (IPCA) recorded a change of 0.50% in December, slightly below the result of 0.52% of November.

As a result, the year closed at 6.50%, above the rate of 5.91% relative to 2010. In December of the previous year, IPCA closed at 0.63%.

The results of IPCA and INPC of December of 2011 were the last rates to be estimated according to the 2002-2003 Consumer Expenditure Survey (POF). As of January of 2012, the reference base will be the 2008-2009 POF, of which weight structures will be available at IBGE’s webpage (www.ibge.gov.br) at 9 a.m. of the next Wednesday (11).

The complete publication of the survey can be accessed at

https://www.ibge.gov.br/english/estatistica/indicadores/precos/inpc_ipca/defaultinpc.shtm

IPCA of 6.50% is the highest since 2004 

The IPCA change in 2011 was of 6.50%, the highest change since 2004 (7.60%) and 0.59 p.p. above the rate of 5.91% of 2010. Most surveyed products and services recorded higher changes than a year ago.

The group with the most substantial rise was transportation, which changed from 2.41% to 6.05%. The exceptions were food products and beverages (from 10.39% to 7.18%) and household articles (from 3.53% to 0.00%).

In 2011, consumers spent more with transportation.

The rate for this group rose 3.64 p.p. year on year due to the increase in prices of several consumer expenditure important items, such as air tickets and ethanol. 

Although the prices of food products and beverages grew less than those of transportation, this group exerted the highest impact in the year.

Accounting for 23.46% of consumer expenditure, the group represented 1.69 p.p. of the index, that is, 26%. That was attributable to the pressure exerted by food consumed out of the housing unit, with a rise in prices of 10.49% in 2011, following the high of 9.81% in 2010.

The meals out of the house item, by also increasing 10.49%, exerted the main individual impact on the IPCA of the year, with 0.47 p.p.

Conversely, food consumed in the house was more expensive in 5.43%, considerably less than the 10.70% of 2010. Considering the main individual impacts, schools (regular courses) and domestic personnel come in second place, both with 0.40 p.p, after meals out of the house. Families spent more on domestic personnel (11.37%), a slightly lower change than that of 2010 (11.82%). 

Other items also contributed positively: banking services (from –1.55% in 2010 to 12.46% in 2011), manicure services (from 8.32% to 11.29%) and hairdressing (from 8.16% to 9.88%), leading personal expenses to 8.61%, the highest group change, above the 7.37% of the previous year. 

Schools reached 8.09% in 2011, with monthly fees having increased by 6.64% in 2010. General courses (idioms, computer, etc.) reached 10.52%, also above the rate of 2010 (7.01%). The education group closed 2011 with 8.06%, above the 6.22% of the previous year. 

Consumers also spent more on residential rent, which closed 2011 in 11.01%, after having increased 7.42% in the previous year. As a result, expenses with housing changed from 5.00% in 2010 to 6.75% in 2011, included substantial increases in water and sewage fees (from 3.37% to 8.30%), cleaning articles (from 2.45% to 6.94%) and personnel for domestic repairs (from 10.55% to 9.56%). 

It was also more expensive to pay for health insurance, as monthly fees rose 7.54% in the year, against the 6.86% of 2010. This item helped to rise expenses with the health and personal care group in 6.32% (which had increased by 5.07% in 2010), in conjunction with the rise in the services of hospitalization and surgery (from 8.81% to 11.63%), dentists (from 8.03% in 2010 to 9.03%) and medicines (from 3.37% to 4.39%). 

Apparel, which registered 7.52% in 2010, were revised up to 8.27%. Expenses with household articles, from 3.53% in 2010 to 0.0% in 2011, and communication, from 0.88% to 1.52%, recorded the lowest result of the year.

As for the surveyed metropolitan regions, the highest result occurred in Curitiba (7.13%) due to the increase in the prices of food products out of the house, which reached 16.20%. Belém registered the lowest index (4.74%) because of the food products and beverages group, with 5.59%, and prices of bottled gas, which were 9.19% less expensive. 

Food products and beverages account for 58% of the index of December 

In the IPCA of December (0.50%), although food products and apparel showed acceleration in the price growth rate, the other groups of products and services registered reduction over the previous month or very close rates. 

The food products and beverages group kept the upward trend and, by changing from 1.08% in November to 1.23% in December, exerted an impact of 0.29 p.p. in the monthly index, accounting for 58% of the IPCA. That scenario was driven by meat, which was 4.11% more expensive after growing 2.63% in November. It lead the main impacts of the month with 0.10 p.p. 

Apparel also rose from 0.58% in November to 0.80% in December. Men’s wearing apparel reached 1.57% in the month after the rate of -0.04% in November 

Conversely, household articles came from 0.05% in November to -0.87% in December House appliances were 2.68%% less expensive (the change of November was of 0.30%) as a result of the reduction of the Tax over Industrialized Products (IPI) as of December 1. As for TV, Stereo and Computer articles, prices dropped further, from –1.28% to –1.82%.

 In transportation, change was null in December and 0.01% in November. The main negative influences came from air tickets (from 3.91% to –2.05%), voluntary insurance (from –0.56% to –6.86%) and used automobiles (from –1.08% to –0.32%). Conversely, fuels (from –0.10% to 0.35%) continued growing.

Concerning personal expenses, which came from 0.88% in November to 0.68% in December, the highlight was domestic personnel, with a less intense high of 1.03% compared with the 1.36% of the previous month.

As for hairdressing, the increase was more substantial, from 1.19% to 1.83%.

In the communication group (from 0.39% to 0.07%), the negative influence came from cellular telephony (from 1.79% to 0.01%), as great part of the adjustment occurred in the previous month. It is important to mention that from December 22 fixed telephony fees, from 0.0% to 0.22%, were adjusted in about 2%. 

The other groups recorded changes next to those of November: housing (from 0.47% to 0.45%), health and personal care (from 0.42% to 0.44%) and education (from 0.02% to 0.05%). 

Among the regional indices, Salvador (0.98%) registered the highest result, impacted by food, which rose 2.07%.

Fuels also saw a significant increase in Salvador, with gasoline changing 7.84% and ethanol, 7.19%. Porto Alegre (0.19%) registered the lowest monthly result, mainly due to the rate of food (0.18%), which grew less than in the other regions. 

In order to estimate the index of the month, the prices collected from November 30 to December 28 of 2011 (reference) were compared with the prices in force from October 28 to November 29 of 2011 (base).

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília.

INPC closes 2011 at 6.08%

The National Consumer Price Index (INPC) recorded a change of 0.51% in December, slightly below the result of 0.57% of November.

The accumulated indicator in 2011 closed at 6.08%, below the rate of 6.47% relative to the same period of 2010. Food products changed 6.27% and non-food products, 6.00%. In 2010 food products rose 10.82% and non-food products, 4.63%. 

In December of 2010, INPC was at 0.60%.

Food products recorded a change of 1.14% in December, while non-food products increased by 0.23%. In November, the results were at 1.18% and 0.30%, respectively. 

Among the regional indices, Salvador (0.83%) registered the highest result, impacted by food, which rose 2.05%.

In addition to food products, gasoline had a high in Salvador, reaching 7.84%. Porto Alegre (0.04%) registered the lowest monthly result, mainly due to the rate of food, which drooped by 0.10%.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to six minimum wages, with a salaried head of the family, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília.