IPCA increases by 0.64% in September

October 09, 2020 09h00 AM | Last Updated: October 10, 2020 01h59 PM

The Extended National Price Index (IPCA) of September 0.64%, 0.40 percentage points (p.p.) above the 0.24% of August. That is the highest result for a month of September since 2003 (0.78%). The indicator had a cumulative increase of 1.34% in the year and of 3.14% in 12 months, above the 2.44% registered in the previous 12 months. In September 2019, IPCA had changed by -0.04%.

Period Rate
Sep/20 0.64%
Aug/20 0.24%
Sep/19 -0.04%
Cumulative in the year 1.34%
Cumulative in 12 months 3.14%

The biggest change (2.28%) and the main impact (0.46 percentage points) in the monthly index came from Food and beverages, which accelerated against the August result (0.78%). Six other groups recorded increases, the main highlights being Household articles (1.00%), Transportation (0.70%) and Housing (0.37%). Wearing apparel, after recording decreases for four straight months, also rose (0.37%) and accounted for 0.02 p.p. of the September result. In terms of decreases, Health and personal care (-0.64%) stands out, with an impact of -0.09 p.p. The other groups ranged between a decrease of 0.09% in Education and an increase of 0.15% in Communication.

IPCA - Chage and Impact by Groups - monthly  
Group Change (%) Impact (p.p.)
August September August September 
General Index 0.24 0.64 0.24 0.64
Food and beverages  0.78 2.28 0.15 0.46
Housing 0.36 0.37 0.05 0.06
Household articles  0.56 1.00 0.02 0.04
Wearing apparel  -0.78 0.37 -0.03 0.02
Transportation 0.82 0.70 0.16 0.14
Health and personal care 0.50 -0.64 0.07 -0.09
Personal expenses  -0.01 0.09 0.00 0.01
Education -3.47 -0.09 -0.22 -0.01
Communication 0.67 0.15 0.04 0.01
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços  

Acceleration in the group Food and beverages (2.28%) was mainly due to food at home, the prices of which rose 2.89% against August. Among the biggest changes are soybean oil (27.54%) and rice (17.98%), which had cumulative increases of 51.30% and 40.69%, respectively. Together, both items accounted for 0.16 p.ercentage points of the September's IPCA. 

Prices of other important products, sucha as tomato (11.72%), long-life milk (6.01%) and meats (4.53%) also rose. From the persective of decrease, the hihlights were onion (-11.80%), potato (-6.30%), garlic (-4.54%) and fruits (-1.59%).

Food away from home, which had fallen 0.11% in August, rose 0.82% in September, influenced by the rise of prices of snacks (1.12%) and meals (0.66%). 

The second biggest contribution to the monthly index came from Household articles (1.00%), with increases mainly due to the items TV, sound and computer equipment (1.99%) and furniture (1.10%). This one, in spite of the increase observed in the month, had a cumulative decrease of 8.73% in the year.  

Transportation (0.70%) rose for the fourth month in a row, despite the deceleration against August (0.82%). Gasoline, with a hike of 3.22% in August, rose 1.95% in September, and accounted for 0.09 p.p. 

As for gasoline, the localities surveyed recorded changes ranging from the 6.04% decrease in Salvador up to the 4.21% in Fortaleza. Prices of diesel (2.47%) and ethanol (2.21%) also rose, whereas those of vehicle gas fell 3.16%.

Also in Transportation, a highlight was airfares, which recorded an increase (6.39%) after four straight months of negative results. From the perspective of decreases, it is worth mentioning the 2.73% down of voluntary car insurance, with a cumulative decrease of 11.86% in the year.

In Housing (0.37%), the biggest impact on the monthly index (0.02 percentage points) came from bottled gas, the prices of which rose 1.61%.The biggest change was that of brick (4.67%), with a cumulative increase of 22.32% in the year. Other highlights were the hikes of water and sewage fares (0.56%), due to the 3.40% price adjustment in São Paulo (1.91%), in effect since Agust 15, and the fall of gpiped gas (-0.85%), due to two decreases: in Curitiba (-6.39%), a reduction by 8.88% from August 19; and Rio de Janeiro (-0.54%), a reduction by 5.16% from August 1st.

Also in Housing, electricity (0.07%) recorded a slight increase in September, with changes that ranged from a decrease in Belo Horizonte (1.76%) up to the increase in Campo Grande (3.41%), with a rise of the PIS/COFINS share. Other highlight were price adjustments  Other highlight are price adjustments of 5.93% in Vitória (0.40%)  and of 2.86% in Belém (-0.09%), both in effect since August 7th. In São Luís (-0.72%), there has been a 0.31% decrease in fares, since August 28th. 

Wearing apparel (0.37%) rose in September, after a decrease of 0.78% in August. A contribution o that came from footwear and accessories (0.56%) and male wear (0.58%), both with an impact of 0.01 percentage points. Jewelry and costume jewelry (1.22%) remain on an upward trend, despite the deceleration against the previous month (2.32%). The only item recording a decrease was female wear (-0.11%). 

The decrease (-0.64%) and the negative contribution (-0.09 p.p.) of the group Health and personal care were the most significant ones on the September IPCA. That was due to the item health insurance plan (-2.31%), which accounted for -0.10 percentage points. On August 21, due to the 16th Extraordinary Collegiate Meeting, the ANS decided to suspend price adjustments up to the end of 2020. As a result, all the factor included in advance in May, June, July and August, relative to what would be announced in July this year, and was discounted from the September IPCA-15 and replicated for the Sepember IPCA, as stated in the technical note 03/2020.

The indexes of the 16 areas surveyed recorded an increase in September. The lowest result was that of the metropolitan area of Salvador (0.23%), due to the fall of gasoline prices (-6.04%). The highest index was that of Campo Grande (1.26%), due to the rise of meats (6.63%), gasoline (2.69%) and electricity (3.41%).

IPCA - Change by area - monthly and cumulative change in the year and in 12 months
Area Regional Weight (%) Change (%) Cumulative Change (%)
August September  Year 12 months
Campo Grande 1.57 1.04 1.26 3.41 5.78
Fortaleza 3,23 -0.23 1.22 2.55 4.13
Rio Branco 0.51 0.54 1.19 2.15 3.36
Goiânia 4,17 0.66 1.03 0.78 2.98
São Luís 1.62 0.38 1.00 1.31 3.50
Belém 3.94 -0.04 0.95 1.37 4.37
Vitória 1.86 -0.03 0.83 1.76 3.33
Recife 3.92 0.46 0.78 2.78 3.84
Belo Horizonte 9.69 0.21 0.76 1.34 3.04
Aracaju 1.03 -0.30 0.73 1.89 3.18
Curitiba 8.09 0.20 0.71 0.62 2.47
Porto Alegre 8.61 0.33 0.68 0.89 2.52
Rio de Janeiro 9.43 -0.13 0.62 1.13 2.79
São Paulo 32.28 0.31 0.44 1.31 3.12
Brasília 4.06 0.58 0.37 0.88 2.81
Salvador 5.99 0.13 0.23 1.71 3.31
Brazil 100.00 0.24 0.64 1.34 3.14

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, and encompasses ten metropolitan areas, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. In order to estimate the index of the month, the prices collected from August 28th to September 28th, 2020 (reference) were compared with the prices in force from July 29th to August 27th, 2020 (base).  

It is worth mentioning that due to the pandemic, the IBGE has suspended on site data collection. As of March 18, prices have been collected by other means, such as surveys on Internet sites, by phone or email.

INPC of September rises 0.87%

The National Consumer Price Index (INPC) of September rose by 0.87%, above the 0.36% of August. That is the highest figure for a month of September since 1995, when the index was 1.17%. In August, the indicator was 0.36%. INPC had a cumulative increase of 2.04% in the year and of 3.89% in the last twelve months. In September 2019, the rate had been -0.05%.

Food products rose 2.63% in September, whereas, in the previous month, it had been 0.80%. Non-food products rose 0.35%, after registering 0.23% in August. 

As for regional indexes, all the areas had positive changes in the month, as shown in the table below. The municipality of Campo Grande (1.59%) recorded the highest result, mainly due to the hikes observed in four components: rice (17.33%), meats (6.66%), electricity (3.55%) and gasoline (2.69%). the lowest index, in turn, was that of the metropolitan area of Salvador (0.47%), mainly due to th rise of gasoline (-6.04%). 

INPC - Change by areas - monthly and cumulative in the year and in 12 months
Area Regional weight (%) Change (%) Cumulative change  (%)
August September Year 12 months
Campo Grande 1,73 1,33 1,59 4,15 6,63
Fortaleza 5,16 -0,16 1,36 2,95 4,60
Rio Branco 0,72 0,71 1,32 2,81 4,06
Goiânia 4,43 0,61 1,27 1,36 3,85
Vitória 1,91 0,29 1,07 2,86 4,26
Recife 5,60 0,51 1,01 3,51 4,49
São Luís 3,47 0,37 0,99 1,25 3,76
Aracaju 1,29 -0,23 0,88 2,23 3,48
Belo Horizonte 10,35 0,38 0,88 1,98 3,60
Curitiba 7,37 0,40 0,86 1,08 3,02
Rio de Janeiro 9,38 0,07 0,84 1,64 3,11
Porto Alegre 7,15 0,48 0,82 1,70 3,17
Belém 6,95 0,05 0,81 1,74 4,97
São Paulo 24,60 0,51 0,77 2,09 4,12
Brasília 1,97 0,71 0,59 1,40 2,91
Salvador 7,92 0,24 0,47 2,33 3,91
Brazil 100,00 0,36 0,87 2,04 3,89

The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income from 1 to 5 minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. In order to estimate the index of the month, the prices collected from August 28th to September 28th, 2020 (reference) were compared with the prices in force from July 29th to August 27th, 2020 (base).