The Extended Consumer Price Index (IPCA) changed 0.42% in October, below the rate of 0.57% registered in September. As a result, the cumulative index in the year closed at 5.05%, above the rate of 4.38% in the same period of 2013. Considering the last 12 months, the index stayed at 6.59%, below the rate of 6.75% relative to the previous 12 months. In October 2013, the rate was at 0.57%. The complete publication of the survey can be accessed on page https://www.ibge.gov.br/english/estatistica/indicadores/precos/inpc_ipca/defaultinpc.shtm.

Responsible for 43.23% of the expenditure of households, the groups of Food and Beverages and Transportation remained high, though decelerating between September and October. As a result, they were the main responsible for the deceleration of IPCA in October. The results of the groups of products and services surveyed are shown in the following table:

As it rose gain, tomatoes (from -9.42% in September to 12.37% in October) stood out in the group of Food and Beverages (from 0.78% to 0.46%). Yet other products weakened from one month to the other, especially meat, which changed from 3.17% to 1.46%. By contributing with 0.04 percentage points, the item meat remained as the main impact since last month. Other highlights among food are listed below.

Concerning the group of Transportation (from 0.63% in September to 0.39% in October), the item airfare registered a strong decline, hitting 1.94% after the rise of 17.85% in September. Other items than airfare declined, as car repair (from 1.35% to 0.92%) and new cars (from 0.76% to 0.61%). On the other hand, both gasoline and ethanol hit 0.18%, despite the drop of 0.07% and 0.01% in September, respectively.

Together with Food and Transportation, other five out of the nine groups of products and services surveyed reduced their rates. Even decelerating, Housing (from 0.77% in September to 0.68% in October) remained with the highest figure among the groups. The highlights were electricity (from 1.37% to 1.20%), renting (from 0.57% to 0.61%) and manpower for small repairs (from 1.04% to 0.82%). The result of manpower (0.82%) stood out, since the information on earnings coming from the Monthly Employment Survey - PME for the metropolitan areas of Porto Alegre and Salvador were not available in the computation of July, August and September, leading to an adaptation in the methodology. Even counting with the earnings effectively collected by PME in these two areas, the IPCA of October computed the previous months using the methodology usually adopted. In order to obtain the monthly result, it started with the cumulative figure in the period July-October (earnings referenced to the months of May-August), which resulted in 2.38% for Porto Alegre and 2.25% for Salvador. Then the changes registered in the indexes between July and September were subtracted from the cumulative figures between July and October: 2.23% for Porto Alegre and 1.57% for Salvador. Finally the October figures were obtained: 0.14% for Porto Alegre and 0.66% for Salvador.

The same procedure was applied to item domestic workers from the group of Personal Expenses. The cumulative results in the last four months were -1.91% for Salvador and 3.79% for Porto Alegre. Excluding the cumulative change in July, August and September, which stayed at 2.52% for Porto Alegre and at 2.34% for Salvador, the October figure stood at 1.25% and at -4.15%, respectively.

It should be highlighted in the group of Housing that water and sewage fee changed 0.26% after falling 0.45% in September, due to the metropolitan area of São Paulo, whose figure (1.28%) took into account the lower effect of the Incentive Plan for Reduction of Water Consumption, which offered a discount of 30% in the water and sewage bills to those users who reduced the monthly consumption by 20%. Electricity changed 1.20% due to Goiânia (6.65%), where electricity fare was increased by 19.00% since September 12, besides the changes in the parcel of PIS/PASEP/COFINS and pending adjustments in other areas.

Still in the group of Housing, bottled gas changed 0.91%, after rising 2.55% in September.

The groups that changed positively between September and October were Wearing Apparel (from 0.57% in September to 0.62% in October) and Health and Personal Care (from 0.33% to 0.39%).

The highest regional indexes were recorded in Campo Grande (0.79%) and Goiânia (0.78%). In Campo Grande, fuels (3.23%) was responsible for 0.18 percentage points of the monthly index, with a rise of 3.82% in gasoline and of 0.83% in ethanol. In addition, electricity rose 3.16% due to PIS/PASEP/COFINS rates. In Goiânia, the pressure also came from fuels (2.12%) and electricity (6.65%). The price of gasoline increased 2.12% and of ethanol, 2.84%. The rise in electricity (6.65%) was due to the adjustment of 19.00% in the fares in force since September 12. The lowest index was recorded in Salvador (0.05%), where electricity fares became 4.15% cheaper due to PIS/PASEP/COFINS rates. The drop of 4.15% in the item domestic workers also influenced the monthly figure. The next table shows the monthly figures by area surveyed.

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 ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from September 30 to October 28, 2014 (reference) were compared with the prices in force from August 29 to September 29, 2014 (base).

INPC changes 0.38% in October

The National Consumer Price Index (INPC) recorded a change of 0.38% in October, below the result of September (0.49%).  As a result, the cumulative index in the year stayed at 5.02%, above the rate of 4.25% relative to the same period in 2013. Considering the last 12 months, the index was at 6.34%, below the rate of 6.59% in the previous 12 months. In October 2013, INPC was at 0.61%.

Food products rose 0.44% in October, whereas non-food products stayed at 0.35%. In September, the results were 0.73% and 0.39%, respectively.

The highest regional index was registered in Goiânia (0.70%), due to the rise of electricity (6.57%), which was adjusted by 19.00% since September 12.  The lowest index was recorded in Salvador (0.10%), where electricity fares became 4.01% cheaper due to PIS/PASEP/COFINS rates. The drop of 4.15% in the item domestic workers also influenced the monthly figure. The next table shows the monthly figures by area surveyed.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from September 30 to October 28 2014 (reference) were compared with the prices in force from August 29 to September 29 2014 (base).<