The National Consumer Price Index (IPCA) recorded a 0.56% change in January, being above the 0.50% of December. Considering the last twelve months, the index was 6.22%, below that of the immediately previous twelve months (6.50%). In January 2011, the rate was 0.83%.  

This is the first release of price indexes with the new weighing structure, which includes consumption expenditure figures of the Consumer Expenditure Survey (POF) 2008-2009, as informed in September 2011. The new weighting methodology and the criteria used to obtain the results are available at www.ibge.gov.br/home/estatistica/indicadores/precos/inpc_ipca/defaultsrm.shtm.

The biggest part of the monthly index came from food products and beverages (0.86%) and transportation (0.69%), with 0.34 percentage points of contribution from the two groups. Food products registered 0.20 points and transportation, 0.14. Together, they accounted for 61% of the IPCA. See below the results by groups of products and services surveyed:

The group Food products recorded a high a 0.86%, but was below the change of December, when it had reached 1.23%. Meats, which had been responsible for the main impacts in the latest months, now face a low of 0.64% after the high of 4.11% registered in December. Besides meats, the highlights in terms of falling results were: crystallized sugar (from -0.94% to -1.23%), refined sugar (from-1.26% to -0.75%), carton milk (from -1.41% to -1.13%), bread rolls (from 0.91% to -0.30%) and chicken pieces (from 1.65% to -0.13%). Other items, however, rose significantly, for example, “carioca” beans (from 8.84% to 15.06%), carrots (from -4.95% to 11.29%), tomatoes (from 1.04% to 8.09%), potatoes (from -4.46% to 8.01%), black beans (from 0.55% to 5.42%) and green vegetables (from -1.46% to 4.56%).

The group of non-food products recorded 0.47%, being above the December change, which was 0.28%. With a rise of 2.54%, the fares of urban buses accounted for the main individual monthly impact, 0.07 percentage points.  The rate was affected by the result of 8.80% of Rio de Janeiro, as a result of the rise of 10.00% of fares on January 1st. Belo Horizonte, also recorded increase (7.75%), considering the 8.16% rise which occurred on December 30 and in Recife (1.61%), with average readjustment of 7.50%, due to the diversity of fares starting on January 22.

Other rising prices were observed in: air fares (from -2.05% to 10.61%), fares of intercity buses (from 0.54% to 3.23%), voluntary insurance (from -6.86% to 2.69%) and car repair (from 0.49% to 0.71%). As a result, the group transportation recorded a 0.69% change in January, versus a rate of zero in December. Fuels (from 0.35% to -0.45%), on the other hand, recorded decrease. This change was mainly caused by gasoline, which went from a high of 0.30% to a decrease of 0.35%, and ethanol, which changed from 0.74% to -1.25%. The prices of used cars faced more severe decrease and changed from -0.32% to -1.08%.

The group housing also recorded the highest result from December (0.45%) to January (0.53%) due to the change of rents (from 0.71% to 1.30%), condominium fares (from 0.74% to 0.78%), water and sewage fares (from 0.04% to 0.26%).

In the group household articles (from -0.87% to 0.16%), the main negative contribution came from household appliances (from -2.68% to 0.88%).

In personal expenses (from 0.68% to 0.71%), the highlights were: hotels (from -0.15% to 4.01%), seamstress (from 0.49% to 1.41%) and manicure (from 0.88% to 1.65%).

The rate of the group education (from 0.05% to 0.39%) was affected by the result of regular courses (0.35%), which reflected the rises of school fees in the metropolitan area of Porto Alegre (4.37%).

With reference to communication (from 0.07% to 0.21%), the high occurred due to fixed telephony (from 0.22% to 0.84%), the rates of which rose about 2% starting on December 22.  

Apparel (from 0.80% to 0.07%) was below the December rate, as well as the group Health and personal care (from 0.44% to 0.30%). The results by group of products and services are shown below.

Among the indexes by area, Rio de Janeiro (1.11%) recorded the biggest rate, being affected by the changes of food products, which rose 1.24%, and also urban buses (8.80%), which rose 10.00% starting on January 1st.  Fortaleza (0.07%) recorded the lowest rate, because of the result of food products (0.14%), which rose significantly less than in the other areas. The table below presents the results by area:

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, from whatever source, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. In order to estimate the index of the month, the prices collected from December 29 to January 27 of 2012 (reference) were compared with the prices in force from November 30 to December 28 of 2011 (base).

INPC rose 0.51% in January

The National Extended Consumer Price Index (INPC) recorded change of 0.51% in prices in January, the same result as in December. Considering the last twelve months, the index was 5.63%, being below that of the immediately previous months (6.08%). In January 2011, INPC was 0.94%. Food products recorded a change of 0.74% in January, whereas non-food products rose by 0.42%. In December, the results were 1.14% and 0.23%, respectively.

Among the indexes by area, Rio de Janeiro (1.48%) registered the highest result, with the impact of food products, which rose 1.15% and also of urban buses (8.80%), which rose 10.00% starting on January 1st. Fortaleza (0.03%) had the lowest rate, due to the result of food products, which recorded lower increase than in the other areas.

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. In order to estimate the index of the month, the prices collected from December 29 to January 27 of 2012 (reference) were compared with the prices in force from November 30 to December 28 of 2011 (base).  

Consumer price indexes are now calculated according to a new weighting method

January 2011 is the first month in which consumer price indexes are calculated according to expenditure figures obtained from the Consumer Expenditure Survey – POF 2008-2009. POF is conducted every five years by IBGE all over the national territory, and allows the update of weights (relative participation of the value of expenditure of an item consumed in relation to the total expenditure) of products and services in the family budget.  From July 2006 to December 2011, consumer price indexes were measured according to POF 2002-2203.

With this update, products and services may gain, keep or lose in participation, as they reflect changes occurred in the population’s consuming habits.  Another consequence is that some items have been incorporated to and others have left the index basket.

Changes in the Extended National Consumer Price Index (IPCA)

IPCA still refers to families with monthly income of one to 40 minimum wages, from whatever source, what is equivalent to 90% of the families in Brazil.  The weights of the groups of products and services employed in January compared with those of December last year area presented in the graph below:

Food products and beverages remained as the most relevant group in the budget of families; this group lost only 0.34 percentage points from January to December (having changed from 23.46% to 23.12%).  Although meals taken in the household faced little change (from 15.08% to 15.15%), the weight of food products used in meals taken out of the household was 0.41 percentage points smaller.  The weight of meals taken out of the household (lunch or dinner) rose little (from 4.65% to 4.80%) and remained on the leadership, being the main individual item to affect the indexes: 

Transportation, with the biggest gain in weight, kept the second position among the groups of IPCA:  1.85 percentage points more versus December (having risen from de 18.69% to 20.54%). Expenditure with privately-owned vehicles (from 7.33% to 10.32%) and fuels (from 4.55% to 5.35%) became more important to the calculation, whereas public transportation faced decrease in participation (from 6.82% to 4.87%).

Housing remained in the third position and also recorded significant increase, 1.37 percentage points more from December to January (from 13,25% to 14.62%), under the influence of the bigger participation of the items rents and taxes (from 6.60% to 6.76%), repair (from 1.54% to 2.40%) and electricity (from 3.12% to 3.43%).

The group household articles, which was in the last position in terms of participation in the index, recorded increase of 0.78 percentage points in weight (it rose from 3.90% to 4.68%) and now appears as one before the last in terms of position. That occurred mainly due to the significant increase of consumption of televison, sound and computer equipment, the weight of which went from 0.43% to 0.92%.  

Among the five groups which recorded lower participation in the IPCA from December to January, the main loss occurred in education, being 2.84 percentage points lower (falling from 7.21% to 4.37%), being in the last position among the groups, differently from except for stationery articles (which changed from 0.32% to 0.33%), the other items faced decrease, with regular courses as the main highlight (from 5.01% to 2.75%):

Finally, it is worth mentioning the group of personal expenses, the weight of which decreased 0.60 percentage points as a result of the smaller participation of the item recreation (from 3.43% to 3.07%), besides cigarettes (from 1.03% to 0.78%).

Changes in the National Consumer Price Index (IPCA)

With the incorporation of the results of POF 2008-2009 to consumer price indexes, INPC now refers to families with monetary income of one to five minimum wages, with a salaried household head, what is equivalent to a total 50% of Brazilian families. The range employed until December was one to six minimum wages. The weight of groups used in January and that recorded the major differences when compared tro figures in December were food products and beverages (which fell from 30.67% to 28.27%) and transportation (which rose from 16.14% to 17.30%).