The Extended National Consumer Price Index - IPCA stayed at 0.28% in November, 0.14 percentage points (p.p.) below the October's figure (0.42%). The cumulative index in the year stood at 2.50%, the lowest figure for November since 1998 (1.32%) and well below the 5.97% rate in the same period of 2016. The cumulative index in the last 12 months (2.80%) surpassed the 2.70% rate of the immediately previous 12 months. The IPCA was 0.18% in November 2016. The complete data of the IPCA can be accessed here.

 Food and beverages (-0.38%) and Household articles (-0.45%) were the only groups that had their prices reduced. Among the others, Housing (1.27% and 0.20 p.p. of impact on the month´s index), and Transportation (0.52% and 0.09 p.p.) stood out.

For the seventh month in a row, food products, which represents about 25% of the expenditures of households, fell (-0.38%), a sharper drop than that registered in October (-0.05%). In the last 12 months, the cumulative change of this group was -2.32% and, in the year, it stayed at -2.40%, the smallest one since the implementation of the Real Plan back in 1994.

The prices of food for consumption at home retreated, on average, 0.72% between October and November. Major items of the household consumption dropped: cassava flour (from 0.27% to -4.78%), tomatoes (from 4.88% to -4.64%), fruits (from 0.35% to -2.09%), French bread (from 0.35% to -0.55%) and meat (from 0.22% to -0.11%). Other items like carioca beans (from -3.29% to -8.40%), eggs (from -1.41% to -3.28%) and processed meat (from -0.22% to -0.99%) stepped up the drop. Except for the metropolitan area of Rio de Janeiro, which rose 0.06%, the other areas fell between -2.33% (Salvador) and -0.08% (Goiânia) in this group.

Food away from home increased 0.21%, particularly in Brasília (2.06%). In Household articles, the 0.45% drop was influenced by items household appliances (-1.11%) and TV, sound and computers (-1.46%).

Having changed 1.27% and impacted 0.20 p.p., Housing exerted the major impact, since electricity (0.15 p.p.) rose, on average, 4.21%. The red tariff flag level 2 came into force in November, charging and additional R$5.00 per each 100 kWh consumed. The tariff flag in force in October was also the red one level 2, though the additional charge was R$3.50 per each 100 kWh consumed.

In Goiânia, electricity rose 14.40%, as a result of the average adjustment of 15.70% in the fare since October 22. In Brasília, the average adjustment of 6.84% came into force on the same date and, in the metropolitan area of São Paulo, the electricity fare of one of its concessionaires was adjusted by 22.59% on October 23.

Still in the group of Housing, the price of bottled gas rose 1.57%, influenced by the average adjustment of 4.50% in the 13-kg cylinder in the refineries on November 5. In addition, piped gas was adjusted by 1.54% in Rio de Janeiro (1.49%) on November 1st, leading this item to record a national change of 0.82%.

The rise in the water and sewage fees (1.32%) was due to the adjustment of 7.89% in the fare in São Paulo (5.31%), in force since November 10.

Concerning Transportation (0.52% and 0.09 p.p.), gasoline and ethanol stood out, which became, on average, 2.92% and 4.14% more expensive, respectively. Airfare declined 10.03% in November and, in urban bus, the -0.55% change reflected the reduction of R$0.20 in the fare in Rio de Janeiro (-2.78%).

Regarding the regional indexes, Salvador posted the biggest drop (-0.26%), due to the retreat in cassava flour (-12.24%) and carioca beans (-25.37%). Goiânia registered the biggest rise (0.96%), leveraged by electricity (14.40%) and gasoline (5.03%).

The IPCA has been calculated by the IBGE since 1980. It refers to households 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.

INPC stays at 0.18% in November

The National Consumer Price Index - INPC changed 0.18% in November, 0.19 p.p. below the rate of 0.37% of October. The cumulative index in the year (1.80%) stood below the 6.43% rate of the same period in 2016, becoming the lowest cumulative index for this period since the implementation of the Real Plan back in 1994. The cumulative index in the last 12 months (1.95%) stayed above that recorded in the immediately previous 12 months (1.83%). In November 2016, the INPC was 0.07%.

Food products (-0.54%) dropped more than in October (-0.11%). Non-food products changed 0.49%, a lower rise than that in the previous month (0.58%).

Among the metropolitan areas and municipalities surveyed, Salvador (-0.36%) posted the biggest drop, highlighted by cassava flour (-12,24%) and carioca beans (-25.37%), and Goiânia, the biggest rise (0.98%), leveraged by electricity (14.84%) and gasoline, 5.03% more expensive, on average.

The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income of one to five minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in the country, besides the municipalities of Goiânia, Campo Grande and Brasília.