The Extended National Consumer Price Index 15 - IPCA-15 changed 1.05% in December, accelerating in relation to the rate of 0.14% registered in November. This was the highest monthly figure since June 2018, when the index stayed at 1.11%, and the highest index registered in December since 2015, when it was 1.18%. Therefore, the IPCA-E, which is the IPCA-15 accrued in the quarter, closed the year of 2019 at 3.91%, above the rate of 2.67% recorded in the 12 immediately previous months. In December 2018, the rate was -0.16%.

Of the nine groups of products and services surveyed, only that of Household articles registered a deflation (-0.84%) between November and December. Among the rises, the highlight was Food and beverages, which recorded the highest change (2.59%) and the biggest impact (0.63 percentage points) on the month´s index. The second biggest change was of the group of Personal expenses (1.74%), whose prices accelerated in the comparison with the previous month (0.40%). Transportation (0.90%) also accelerated in the comparison with November (0.30%), contributing with 0.16 p.p. to the month´s index. The other groups stayed between 0.09% reported by the groups of Wearing apparel and Education and 0.66%, reported by Communication.

The acceleration of the group of Food and beverages (2.59%) was mainly explained by the increase in the prices of meat, which recorded a rise of 17.71% in December and contributed with the biggest individual impact to the month´s index (0.48 p.p.). Other items that comprise the group of food at home (3.62%), like carioca beans (20.38%) and fruits (1.67%), also contributed to this result. On the drop side, the highlights were potatoes (-9.33%) and onions (-7.18%), which contributed with -0.02 p.p. and -0.01 p.p., respectively. Food away from home (0.79%) also accelerated in the comparison with the previous month (0.12%), influenced by the rises reported in snacks (1.09%) and meals (0.90%).

In Personal expenses (1.74%), the major highlight was games of chance (36.99%), which contributed with the second biggest individual impact to the month´s index (0.16 p.p.). The rise was due to the adjustments in the prices of sweepstakes, in force since November 10.

In the group of Transportation (0.90%), the biggest impact (0.07 p.p.) came from airfare (15.63%), whose prices had already risen 4.44% in November. Gasoline (1.49%) and ethanol (3.38%) also accelerated in the comparison with the previous month, when they had increased 0.80% and 2.53%, respectively. As a result, fuels changed from 1.07% in November to 1.76% in the December´s IPCA-15.

Still in Transportation, interstate bus (1.06%) stood out with the average adjustment of 14.00% in the fare in Salvador (5.52%) since December 5. In intercity bus (0.04%), the fare in Belém (2.33%) suffered an average adjustment of 4.00%, in force since November and included in the index from December onwards.

In Housing (0.25%), the highlights were the rises in residential rent (0.50%) and condominium fees (0.65%), both with changes above those in the previous month (0.08% and 0.20%, respectively). In addition, electricity (-0.12%) registered a less intense drop than that recorded in the November´s IPCA-15 (-1.51%). It is worth highlighting that the yellow tariff flag came into force in December, charging R$1.343 for each 100 kilowatt-hour consumed. The red tariff flag level 1 was in force in November, which charged R$4.169 to each 100 kilowatt-hour. One of the concessionaires surveyed in Porto Alegre (-2.75%) reduced the fare by 6.00%, in force since November 22.

Still in Housing, the drop reported by the item piped gas (-0.18%) was due to the reduction of 0.60% in the fare practiced in Rio de Janeiro (-0.38%), in force since November 1st. On the other hand, the result of water and sewage fees (0.34%) was a consequence of the adjustment of 3.43% in the fare in Curitiba (3.32%), in force since November 11. Bottled gas also became more expensive (0.32%) after the adjustment of 4.00% in the price of the 13-kg cylinder in the refineries on November 27.

In Household articles (-0.84%), the drop this month was influenced by the reduction in the prices of the items TV set, sound system and computers (-2.09%) and furniture (-1.16%).

Rise is registered in all the regions surveyed

All the regions surveyed rose between November and December. The lowest figure was reported in the metropolitan area of Recife (0.60%), due to the drop in electricity (-1.71%). The highest index was registered in the metropolitan area of Belém (1.72%), influenced by the rises in meat (18.89%).

In order to estimate the IPCA-15, the prices collected from November 12 to December 11, 2019 (reference) were compared with the prices in force from October 12 to November 11, 2019 (base). The indicator refers to households with monthly income of 1 to 40 minimum wages and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, as well as Brasília and Goiânia. The methodology is the same as the one used for the IPCA; the difference lies in the period of price collection and in the geographic coverage.