IPCA changes 0.32% in January

February 08, 2019 09h00 AM | Last Updated: February 12, 2019 06h32 PM

The Extended National Consumer Price Index - IPCA changed 0.32% in January, above the rate of 0.15% in December. The index had been 0.29% in January 2018. The cumulative IPCA over 12 months stayed at 3.78%, slightly above the rate of 3.75% registered in the 12 immediately previous months. The support material of this release can be found on the right side.

Period RATE
January 2019 0.32%
December 2018 0.15%
January 2018 0.29%
Cumulative in 12 months 3.78%

As can be seen in the following table, of the nine groups of products and services surveyed, only Wearing apparel (-1.15%) registered a deflation between December and January. The highest positive change was recorded by Food and beverages (0.90%), which also exerted the biggest impact on the month´s index (0.22 p.p.). The second highest rise was registered by Personal expenses (0.61%), which contributed with 0.07 p.p. Together, the two groups accounted for about 90% of the month´s index. The other groups stood between 0.02% of Transportation and 0.32% of Household articles.

IPCA - Change and impact by group - monthly
Group Change (%) Impact (p.p.)
December January December January
     
Overall Index 0.15 0.32 0.15 0.32
     
Food and Beverages 0.44 0.90 0.11 0.22
Housing -0.15 0.24 -0.02 0.04
Household Articles 0.57 0.32 0.02 0.01
Wearing Apparel 1.14 -1.15 0.06 -0.07
Transportation -0.54 0.02 -0.10 0.01
Health and Personal Care 0.32 0.26 0.04 0.03
Personal Expenses 0.29 0.61 0.03 0.07
Education 0.21 0.12 0.01 0.01
Communication 0.01 0.04 0.00 0.00
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

Having changed from 0.44% to 0.90%, the group of Food and beverages accelerated between December and January, thus contributing to increase the IPCA this month. The group of food at home rose 0.97% in January, mainly due to the price rises in carioca beans (19.76%), onions (10.21%), fruits (5.45%) and meat (0.78%). After dropping for five consecutive months, long-life milk increased 2.10%, contributing with 0.02 p.p. to the January IPCA. On the dropping side, the prices of tomatoes (-19.46%) were significantly reduced, which helped to restrain the rise of food items.

Food away from home also accelerated and increased 0.79%, compared with the rise of 0.33% in December. Having changed from 0.72% to 0.91%, snacks stood out, as well asmeals, which hit 0.90% after having registered 0.08% in the previous month.

On their turn, Personal expenses rose 0.61% in this month´s IPCA, having accelerated in relation to the change of 0.29% recorded in December. The rise of items like tours (6.77%) and hotel (1.06%) and some services like manicurist (0.85%) and hairdresser (0.69%) contributed to this result.

After the deflation of 0.54% in December, Transportation recorded a slight rise in January (0.02%). Although fuels (-2.09%) fell for the third month in a row, this drop was less intense than that in the previous month (-4.25%). Even so, the biggest individual impact on the month´s index (-0.11 p.p.) came from gasoline (-2.41%). Except for the metropolitan area of Salvador, which posted a rise of 1.50% in the price of this fuel, the other areas registered drops that varied between -5.98% in Aracaju and -0.31% in the metropolitan area of Rio de Janeiro. Ethanol and diesel fuel also dropped: -0.75% and -1.61%, respectively. In addition, airfare, which had risen 29.12% in December, fell 3.59% in January, with an impact of -0.02 p.p.

The biggest positive contribution in the group of Transportation was urban bus (2.67% and 0.07 p.p.), due to the adjustments in the fare in five out of the 16 areas surveyed during the reference period of the survey, as shown in the following table:

IPCA - Adjustments of urban buses
Area Change (%) Adjustment (%) Date
Belo Horizonte 10.12 11.00 Dec 30
São Paulo 5.50 7.50 Jan 7
Vitória 5.70 10.51 Jan 13
Fortaleza 0.30 5.88 Jan 26
São Luís 1.29 9.68 Jan 26
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

Still in Transportation, the adjustments in the metropolitan area of São Paulo of 7.50% in train fare (4.00%) and underground (4.00%), in force since January 13, stood out. Intercity buses also had their fare adjusted: 6.00%, on average, in São Paulo (3.02%), from January 20 onward; and 6.78% in Belo Horizonte (3.00%), from December 30 onward. In Rio de Janeiro, taxi fare had an average adjustment of 4.26%, in force since January 1st.

In the group of Housing (0.24%), which had registered a deflation of 0.15% in December, recorded a rise in the items residential rent (0.42%) and condominium fees (0.77%). Electricity (-0.13%) posted a less intense drop compared with the previous month, when it had registered -1.96%. The areas recorded a variation between -8.24% in the municipality of Rio Branco and 3.92% in the metropolitan area of Fortaleza. Despite the average adjustment of 21.29% in the fare from December 13 onward in Rio Branco, taxes were reduced during the reference period of the survey. Moreover, the adjustment was put on hold by the Justice on January 3 and it only became in force on January 29. It should be highlighted that the green tariff flag remained in force since the beginning of December, preventing and additional charge per kilowatt-hour consumed.

Still in Housing, the change of 3.53% in item piped gas was due to the adjustment of 7.20% in the fare in Rio de Janeiro (6.53%), in force since January 1st. The item water and sewage fees (0.31%), on its turn, reflected the adjustments of 8.60% in Porto Alegre (2.32%), from December 16 onward, of 4.00% in Campo Grande (3.41%), in force since January 3, and of 6.04% in Rio de Janeiro (0.38%), in force since December 1st.

The group of Wearing apparel (-1.15%) was the only one to register a deflation between December and January and helped to restrain the month´s rate, with an impact of -0.07 p.p. Women’s wearing apparel (from 2.34% in December to -2.00% in January), children´s wearing apparel (from 0.91% in December to -1.06% in January) and men’s wearing apparel (from 1.57% in December to -0.99% in January) recorded negative changes. In addition, footwear also dropped (-0.65%).

Concerning the regional indexes, only the municipalities of Rio Branco (-0.09%) and Goiânia (-0.17%) posted a deflation in the January´s IPCA, as shown in the following table: The result in Goiânia  was especially due to the drops reported in the prices of gasoline (-4.97%) and tomatoes (-20.89%). The highest index was registered in the metropolitan area of Belo Horizonte (0.70%), whose result was mainly influenced by the adjustment of 11.00% in the fare of urban buses (10.12%), in force since December 30.

IPCA - Change by area - monthly and cumulative in 12 months
Area Regional Weight (%) Change (%) Cumulative Change (%)
December January 12 months
Belo Horizonte 10.86 0.01 0.70 4.36
Rio de Janeiro 12.06 0.40 0.49 4.37
Salvador 6.12 0.56 0.37 4.06
São Paulo 30.67 0.03 0.37 3.85
Belém 4.23 0.48 0.30 3.23
Aracaju 0.79 0.67 0.29 2.94
Vitória 1.78 -0.01 0.28 3.75
Recife 4.20 0.18 0.27 3.08
Campo Grande 1.51 0.06 0.20 3.08
Fortaleza 2.91 0.07 0.16 2.71
São Luís 1.87 0.25 0.09 2.74
Porto Alegre 8.40 0.26 0.08 4.00
Brasília 2.80 0.32 0.05 3.27
Curitiba 7.79 -0.17 0.02 3.14
Rio Branco 0.42 0.63 -0.09 3.35
Goiânia 3.59 -0.03 -0.17 2.91
     
Brazil 100.00 0.15 0.32 3.78
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

The IPCA has been calculated by the IBGE since 1980. It refers to households with monthly income of 1 to 40 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Aracaju, Brasília, Campo Grande, Goiânia, Rio Branco and São Luís. In order to estimate the index of the month, the prices collected from December 29, 2018 to January 29,  2019 (reference) were compared with the prices in force from November 29 to December 28, 2018 (base).

INPC changes 0.36% in January

The National Consumer Price Index - INPC changed 0.36% in January, above the rate of 0.14% in December. The index stayed at 3.57% in the last 12 months, above the rate of 3.43% in the 12 immediately previous months. The rate hit 0.23% in January 2018.

Food products rose 0.90% in January, whereas they registered 0.45% in the previous month. The group of non-food products changed 0.13%, whereas it had recorded 0.01% in December.

Concerning the regional indexes, three out of the 16 areas surveyed recorded a deflation between December and January, as shown in the following table: Curitiba (-0.02%), Goiânia (-0.09%) and Rio Branco (-0.13%). In the last area, the drop was mainly due to the item electricity (-7.89%). Despite the average adjustment of 21.29% in the fare from December 13 onward, the taxes on the electricity bills reduced in the reference period of the survey. Moreover, the adjustment was put on hold by the Justice on January 3 and it only became in force on January 29. The highest index was registered in the metropolitan area of Belo Horizonte (0.84%), due to the adjustment of 11.00% in the fare of urban buses (10.12%), in force since December 30, and to the rise of long-life milk (9.30%) and fruits (13.47%).

INPC - Change by area - monthly and cumulative in 12 months
Area Regional Weight (%) Change (%) Cumulative Change (%)
December January 12 months
Belo Horizonte 10.60 0.03 0.84 4.34
São Paulo 24.24 0.01 0.55 3.84
Aracaju 1.29 0.83 0.47 2.80
Recife 5.88 0.28 0.38 2.67
Belém 6.44 0.44 0.36 2.84
Vitória 1.83 -0.27 0.31 3.62
Rio de Janeiro 9.51 0.13 0.31 4.25
Campo Grande 1.64 0.10 0.30 2.86
Fortaleza 5.42 0.14 0.26 2.57
Salvador 8.75 0.63 0.23 3.66
São Luís 3.11 0.34 0.17 2.54
Brasília 1.88 0.04 0.11 2.51
Porto Alegre 7.38 0.20 0.08 4.04
Curitiba 7.29 -0.32 -0.02 3.13
Goiânia 4.15 -0.10 -0.09 2.83
Rio Branco 0.59 0.56 -0.13 3.60
     
Brazil 100.00 0.14 0.36 3.57
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income of 1 to 5 minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Aracaju, Brasília, Campo Grande, Goiânia, Rio Branco and São Luís.  In order to estimate the index of the month, the prices collected from December 29, 2018 to January 29,  2019 (reference) were compared with the prices in force from November 29 to December 28, 2018 (base).