In the year, index accumulated 7.60% and remained 1.70 percentage point below the index of 2003 (9.30%). Among the groups of industry surveyed by IBGE, Communication (13.91%) presented the highest price change during 2004, and Food Products and Beverages (3.86%) the lowest price change.

In December, the Extended Consumer Price Index - IPCA had change of 0.86% and remained 0.17 percentage point above the rate of 0.69% of November. For the third consecutive month, the index was pressured by the increases of fuels. Gasoline hiked 5.06% and was the major individual impact in the month, 0.21 percentage point. Considering the increase of 1.45% in October and the one of 2.56% of November, the price of the liter increased 9.31% in the last three months. The hike is a consequence of the readjustments of 4% and 7% in the refineries from October 15 to November 26, besides the passing on of the increases in the prices of alcohol used in the mixture with the gasoline. For the consumers, alcohol hiked 2.81% in December, summing 20.36% in the last three months of the year.

The IPCA was also influenced by the tariffs of urban buses, 1.60% more expensive with the readjustments that occurred in Recife (11.38%), Belo Horizonte (7.84%) and Fortaleza (5.33%). Besides this, the account of water and sewerage hiked 1.79%, with readjustments in Rio de Janeiro (11.68%) and Fortaleza (7.43%).

The group Food Products and Beverages, after presenting stability in November, increased 0.65% in December, due to the fact that the growth of the prices of meats (3.55%) was the second highest impact in the month (0.10 percentage point). Nevertheless, several products turned cheaper, such as potatoes (-8.92%), soybean oil (-3.06%), rice (-2.98%), wheat flower (-2.41%) and noodles (-1.63%).

The IPCA is calculated by the IBGE since 1980 and refers to families with monetary income, from any source, ranging from 1 to 40 minimum wages. It includes nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília. In December 2004, the prices collected between November 26 to December 27 (reference period) were compared to the prices charged between October 28 to November 25 (base period).

Indexes by areas

The major index by area was observed in Belo Horizonte (1.42%) due to some items that recorded results above the national rates: food products (1.18%), cooking gas (2.15%), urban bus fares (7.84%) and cabs (9.72%). The lowest index was verified in Curitiba (0.53%), where the increase of gasoline (1.93%) was lower than the one registered in the other areas and where the results of important items were negative, such as: cooking gas (-0.02%), food products (-0.04%) and alcohol (-0.49%).

PARTICIPATION BY AREA (%)

CHANGE (%)

NOVEMBER

DECEMBER

IN THE YEAR

Belo Horizonte

9.15

0.90

1.42

8.93

Recife

4.25

0.63

1.31

6.55

Porto Alegre

9.19

0.52

1.13

8.54

Goiânia

3.78

0.79

1.10

8.95

Fortaleza

3.34

0.59

1.00

7.20

Belém

3.85

0.64

0.87

6.18

Rio de Janeiro

13.40

0.50

0.84

6.95

São Paulo

36.26

0.75

0.70

7.41

Salvador

6.23

0.62

0.59

5.68

Brasília

3.06

0.95

0.58

6.97

Curitiba

7.49

0.71

0.53

9.44

Brazil

100.00

0.69

0.86

7.60

 

 

IPCA accumulates 7.60% in the year

The IPCA changed 7.60% in 2004 and remained below the result of 2003 (9.30%) in 1.70 percentage point. The main causes that produced the deceleration in the overall rate were the following:

 

• Good supply of agricultural products

 

, resulting in cheaper food products which are important in the consumption of the families, as for example rice with fall of 17.14% and responsible for the main individual impact in the year, 0.19 percentage point;

 

 

 

• Influence of a valued exchange rate

, which resulted in moderate changes in products such as cleaning products (3.74%) and personal care (3.05%). Combined with the good harvest of the year, the exchange rate favored the fall in the prices of products entailed with the foreign market, as for example soybean oil (-11.27%) and wheat flower (-3.39%).

 

 

 

 

• Absence of annual readjustments regarding public transportation in some areas.

Administered by the municipalities, the urban bus fares, which have a significant participation in the consumer expenditure, closed the year with stable tariffs in four areas. The result of the item was moderate (4.74%). Other transport vehicles of public use did not present, as well, readjustments in some surveyed areas and the result, therefore, was lower than the overall index. It is the case, for example, of inter-municipal buses (4.84%) and of cabs (4.24%).

 

Contrarily, some pressures forced the result of the IPCA upwards:

 

• Rise in the international prices of petroleum

 

, producing three readjustments of gasoline in the refineries: 10.8% in June 15; 4.0% in October 15 and 7.0% in November 26. With these readjustments and with the readjustment of alcohol, which is included 25% proportionally in its mixture, the gasoline increased 14.64% in the gasoline stations. It was the major individual impact in the index of the year (0.59 percentage point).

 

• Significant rise in the prices of sugarcane

 

due to climatic problems that damaged the crops and the attempt of the sugar sector to recover low prices. The alcohol increased 31.58%, while in 2003 it decreased 12.59%.

 

 

 

• Expressive rise of metallic inputs and petroleum derivatives

influenced the cost of important products and its consumer price. Succeeding increases, initiated in the end of 2003, of items such as steel, iron and plastic resins, influenced the retail prices during 2004. New Automobiles and Household Appliances, for example, remained 13.65% and 9.62% more expensive, respectively.

 

 

 

 

• Rise in the tariffs of important public services

such as electricity (9.64%) and line telephone (14.76%). Electricity had a significant increase even with the favorable revision of tariffs in some areas and with the decrease of the value of the account part that refers to the emergency capacity duty. By its way, the line telephone aggregated, besides the annual readjustment, an additional readjustment divided in two quotas by decision of the Supreme Court of Justice (STJ).

 

The year of 2004 presented a relative stability in the course of the months. The lowest monthly rate (0.33%) occurred in September, when food products presented deflation and few items pressured the overall result. The highest rate (0.91%) was observed in July, a month of significant impact of items with considerable participation in the overall rate such as electricity, line telephone and gasoline, besides food products.

Among the groups, for the second consecutive year, Communication, with 13.91%, was the sector that presented the more expressive change. Food Products and Beverages were the group of lowest result, with 3.86%.

 

CHANGE (%)

CONTRIBUTION

PARTICIPA-TION

Communication

13.91

0.52

3.9752

Transports

10.99

2.33

21.6699

Education

10.44

0.49

4.7901

Apparel

9.95

0.52

5.3130

Housing

7.14

1.18

16.5574

Health and Personal Care

6.88

0.72

10.4666

Personal Expenses

6.84

0.63

9.0953

Household Supplies

5.42

0.31

5.5140

Food Products

and Beverages

3.86

0.90

22.6184

 

After gasoline, came line telephone (14.76%), with 0.48 percentage point, followed by electricity (9.64%), with 0.44 percentage point. The three altogether, were responsible for 1.51 percentage point of the IPCA.

Food products

increased 3.86% and remained below the index of the year. Some products stood out with higher prices, as for example potatoes (34.63%), white plantation sugar (19.52%) and "carioca" beans (16.82%). Other, as for example manioc flower (-20.19%), rice (-17.14%) and soybean oil (-11.27%) became cheaper.

Non-Food Products

The prices of non-food products increased 8.74%, being 3.90% in the first semester and 4.65% in the second semester. In 2003 the hike was of 9.87%, with 6.69% in the first and 2.98% in the second.

Gasoline

that had three readjustments in the year recorded 14.64% and was the major individual contribution (0.59 percentage point). The highest increase was observed in Fortaleza (22.66%) and the lowest in Belém (6.19%). Alcohol, with increase occurring in the sugarcane plants, hiked 31.58%, while in 2003 there was a fall of 12.59%. Regarding cooking gas, it increased 7.15%, more than 2003, when it increased 2.91%.

Indexes by areas

The highest index by area, in the year, was recorded in Curitiba (9,44%), due mainly to the rise in the tariffs of urban buses (15.15%) and of electricity (22.15%), responsible for 1.26 percentage point of the index. The lowest index was registered in Salvador (5.68%).

ACCUMULATED CHANGE (%)

2003

2004

Curitiba

7.33

9.44

Goiânia

10.47

8.95

Belo Horizonte

11.18

8.93

Porto Alegre

9.51

8.54

São Paulo

8.17

7.41

Fortaleza

9.66

7.20

Brasília

10.20

6.97

Rio de Janeiro

10.27

6.95

Recife

9.98

6.55

Belém

10.43

6.18

Salvador

10.60

5.68

Brazil

9.30

7.60

 

 

INPC of December was 0.86%

The National Consumer Price Index - INPC changed 0.86% in December and remained above the rate of November (0.44%) in 0.42 percentage point. The prices of food products changed 0.68%, above the rate of -0.09% recorded in November. The result of non-food products (0.94%) also was higher than the one observed in November (0.67%). The major index by area was verified in Recife (1.72%) and Curitiba (0.39%) remained with the lowest index by area.

In 2004, the INPC accumulated a change of 6.13%. The food products hiked 2.92%, while the non-food products increased 7.56%. In 2003, the result of the year was 10.38%, with a hike of 7.17% in food products and 11.88% in the non-food products. The results by groups were the following:

CHANGE (%)

PARTICI-PATION

2003

2004

2004

Communication

17.91

13.59

1.9278

Education

10.52

10.11

2.5983

Apparel

10.35

9.73

5.8944

Personal Expenses

9.78

8.15

6.2412

Transports

14.29

7.58

17.3816

Housing

12.64

7.32

19.7685

Health and Personal Care

11.49

6.10

8.9463

Household Supplies

7.07

5.50

7.2087

Food Products and Beverages

7.17

2.92

30.0332

 

Regarding the indexes by areas, the highest was observed in Curitiba (8.64%) and the lowest was observed in Salvador (3.88%).

CHANGE (%)

2003

2004

Curitiba

7.47

8.64

Belo Horizonte

12.09

8.50

Goiânia

11.50

8.02

Porto Alegre

9.83

6.92

Fortaleza

10.07

5.66

Rio de Janeiro

11.13

5.61

São Paulo

9.36

5.61

Belém

9.94

5.53

Brasília

12.33

5.52

Recife

11.03

4.99

Salvador

11.92

3.88

Brazil

10.38

6.13

 

Calculated by the IBGE since 1979, the INPC refers to families, with monetary income ranging from 01 to 08 minimum wages, whose head is a salaried worker. It includes nine metropolitan areas in the country, besides the municipality of Goiânia and Brasília. To calculate the index of December, prices collected between November 26 and December 27 (reference period) were compared to prices charged between October 28 and November 25 (base period).