The Extended National Consumer Price Index (IPCA) changed 0.78% in December and stood 0.27 percentage points above the rate of 0.51% registered in November. This was the second highest monthly rate in the year, only surpassed by March´s rate (0.92%). The year of 2014 closed at 6.41%, above the rate of 5.91% last year. The rate was at 0.92% in December 2013.

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Transportation registers highest acceleration in December

According to the following table, the majority of the nine groups of products and services surveyed accelerated the growth rate from one month to the other.

Airfare, which impacted 0.20 percentage points in the index, and the items meat (0.10 p.p.) and meals away from home (0.07 p.p.) were the main individual highlights in December. By adding up to 0.37 p.p., these items accounted for almost half of the IPCA index in December (47%).

The rise in airfare hit 42.53% and took Transportation to 1.38%, the highest group result in December. Among the areas surveyed, the highlights were Salvador and Campo Grande, both recording 54.82%. Even considering the excessive increase in December, this item closed the year at 7.79%, since it posted a cumulative drop of 24.37% up to November.

Ethanol (1.31%), new cars (0.69%), inter-municipal bus fare (0.64%) and gasoline (0.61%) also stood out in the group of Transportation. The rise of 0.61% in gasoline at the pump reflected part of the 3.00% adjustment at the refineries in force since November 7. In the case of ethanol, the increase of 1.31% reflected the beginning of the off-season of sugarcane.

A number of items became more expensive between November and December in the group of food, highlighted by meat, 3.73% more expensive, and meals away from home, which rose 1.41%. Typical Brazilian meal, beans and rice also became more expensive. Beans increased 9.26%, on average, whereas rice became 1.81% more expensive. The main soaring products were as follows.

By rising 0.85%, Wearing Apparel was pressed both by men and women apparel (1.21% for both). Personal Expenses (0.70%) was leveraged by services like: excursion (2.05%), manicurist (2.03%), hairdresser (1.74%) and domestic workers (0.76%).

The groups of Health and Personal Care (0.47%) and Household Articles (0.00%) also registered figures above those recorded in November. On the other hand, Housing (0.51%), Education (0.07%) and Communication (0.00%) posted rates below those in the previous month.

Rio de Janeiro registers the highest IPCA rise in December (1.39%)

Among the regional indexes, the highest rate was recorded in the metropolitan area of Rio de Janeiro (1.39%), pressed by item electricity, whose fare increased 3.46% due to the adjustment of 17.75% in one of its electricity companies, in force since November 7. The item domestic workers also posted an expressive rise in Rio de Janeiro: 1.83%. By hitting 2.28%, the prices of food consumed away from home surpassed the national average. The metropolitan areas of Recife (0.42%) and Belo Horizonte (0.44%) registered the lowest indexes in December, highlighted by food, which recorded 0.72% and 0.63%, respectively. The next table shows the monthly figures by area surveyed.

In 2014, Housing registers the highest change, Food and Beverages, the highest impact

The IPCA closed the year of 2013 at 6.41% and stood 0.50 percentage points above the rate of 5.91% relative to 2013. While the expenses with Housing were those that mostly increased, exceeding in 8.80% what was spent in December 2013, the group of Communication dropped 1.52%. The results of the groups of products and services surveyed are shown in the following table:

In the expenses with Housing (8.80%), which contributed with 1.27 p.p to the index, electricity stood out by rising 17.06%, on average, while dropping 15.66% in 2013. In 2014, the change hit 28.76% in the metropolitan area of Belém and 28.18% in Vitória. The lowest increases were posted in Campo Grande and Rio de Janeiro (9.31% and 9.95%, respectively). Still in the group of Housing, other relevant items in the budget of families became more expensive: cleaning products (10.74%), manpower for small repairs (10.02%), residential rent (9.35%), condominium fees (7.59%) and bottled gas (4.86%).

Although Housing (8.80%) led the group changes, Food and Beverages led the ranking of impacts (1.97 p.p.) by rising 8.03%. Altogether, these two groups were responsible for 51% of the IPCA in 2014, adding up to 3.24 p.p. The rise of food had been noticed over the last years, though it declined between 2013 and 2014, when it changed from 8.48% to 8.03%.

The expenses with Food and Beverages (8.03%) significantly prevailed in the budget of families (24.86%) and the prices of the main products consumed increased in all the areas surveyed, especially in Goiânia (10.69%) , followed by Rio de Janeiro (10.02%). The lowest increase of food was registered in Vitória (6.07%).

The rise was of 7.10%, considering only food purchased to be consumed at home. A number of products became more expensive from one year to the other. By rising 22.21%, the item meat recorded the highest individual impact on the IPCA in 2014, holding 0.55 p.p. The main increases were as followed:

The growth rate of food consumed away from home was even higher: 9.79%. By rising 9.96%, the item meals away from home ranked as the second main impact (0.50 p.p.). The increase was not only in meals, as the majority of items related to food away from home also increased, as showed in the following table:

Despite the rise registered in Food and Beverages, a number of products became cheaper in 2014, as showed in the following table:

The second highest change in groups was recorded in Education, which closed 2014 at 8.45%. Monthly tuitions of regular courses rose 8.87%, whereas those of other courses (language, computers, etc.) stayed at 8.09%.

They were followed by Personal Expenses, which rose 8.31%. Families started to spend 10.54% more on services provided by domestic workers. Other items that pressed this group were hotel (10.42%), manicurist (9.73%), lotteries (9.05%), hairdresser (8.39%), cigarettes (7.20%) and banking services (6.32%).

The group Health and Personal Care, which closed 2014 at 6.97%, was pressed by item health insurance (9.44%), whose installments remained rising. In addition, the following prices also posted rises: medical and dental services (8.88%), laboratory and hospital services (6.44%), personal hygiene products (6.25%) and medicines (4.93%).

Despite the drop of 5.55% in the item TV, sound and computer equipment, Household Articles increased 5.49% and strongly influenced the prices of other items like household appliances (10.59%) and repair of domestic articles (10.01%).

Transportation (3.75%), Wearing Apparel (3.63%) and Communication (-1.52%) were the groups that registered the lowest changes in 2014. As the second highest weight in the budget of families, Transportation recorded a change well below the average and thus strongly influenced the formation of the IPCA in 2014. Urban bus fares stayed at 3.85%, having been adjusted in seven out of the 13 areas surveyed. The results were:

Fuels changed 2.94% and also influenced the IPCA in 2014. The liter of gasoline stood 2.89% higher at the pump, mostly due to the adjustment of 3.00% at the refineries since November 7. Ethanol posted a rate of 1.97%.

Concerning the prices of cars, new cars rose 4.62% and used cars became 2.10% cheaper. The service of car repair rose 8.59%.

Rio de Janeiro registers the highest IPCA rise in 2014 (7.60%)

Among the regional indexes, the highest rate was in the metropolitan area of Rio de Janeiro (7.60%), pressed by items domestic workers (13.78%), meals away from home (11.61%) and residential rent (11.07%). The lowest index was recorded in Salvador (5.76%), in which food at home posted 4.52%, well below the national figure (7.10%). The indexes by area surveyed are showed in the following table:

IPCA has been calculated by IBGE since 1980. It refers to families with monthly earnings 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 November 28 to December 29, 2014 (reference) were compared with the prices in force from October 29 to November 27, 2014 (base).

INPC changes 0.62% in December

The National Consumer Price Index - INPC recorded a change of 0.62% in December, 0.09 percentage points above the figure of November (0.53%). As a result, the year of 2014 closed at 6.23%, above the rate of 5.56% relative to the previous year. In December 2013, the INPC was at 0.72%.

Food products stood at 1.08% in December, whereas the November´s rate was 0.75%. The group of non-food products changed 0.42% in December, close to the rate of 0.43% in November.

The highest regional indexes were recorded in Rio de Janeiro (1.17%) and Goiânia (1.13%), in which food rose 2.30% and 2.63%, respectively. Rio de Janeiro was also pressed by electricity (3.48%), due to the adjustment of 17.75% in one of the electricity companies since November 7. The table below shows the indexes by area surveyed.

The INPC closed the year of 2014 at 6.23%, 0.67 percentage points above the rate of 5.56% in 2013. Food products changed 7.80%, whereas non-food products changed 5.51%. In 2013, food products rose 8.03% and non-food products, 4.54%. The figures by group were:

Among the regional indexes, the highest rate was in the metropolitan area of Rio de Janeiro (7.62%), pressed by items urban bus fare (9.09%), meals away from home (11.61%) and residential rent (11.07%). The lowest index was reported in São Paulo (5.48%), mainly due to the drop of 27.84% in water and sewage fees. The table below shows the indexes by area surveyed.

INPC has been calculated by IBGE since 1979. It refers to families with monthly earnings 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 November 28 to December 29, 2014 (reference) were compared with the prices in force from October 29 to November 27, 2014 (base).