The Extended National Consumer Price Index (IPCA) of October rose 0.86%, standing 0.22 percentage point (pp) above the 0.64% result in September. This is the highest result for a month of October since 2002 (1.31%). In the year, the indicator accumulated an increase of 2.22% and, in 12 months, of 3.92%, above the 3.14% observed in the preceding 12 months. In October 2019, the change was 0.10%.

The biggest change (1.93%) and biggest impact (0.39 pp) on the month’s index came from the Food and beverages group, which decelerated in relation to September (2.28%). There were increases in the other seven groups. The second biggest impact (0.24 p.p.) came from Transportation (1.19%), while the second biggest change came from Household articles (1.53%), which contributed with 0.06 p.p. to the overall result. Another highlight among the positive results was the Wearing apparel group (1.11%), which accelerated in comparison with September (0.37%). The others were between the 0.04% drop in Education and the 0.36% rise in Housing.

The deceleration observed in the Food and beverages group (1.93%) occurred mainly due to the less intense increases in some items of food at home (2.57%), such as rice (13.36%) and soybean oil (17.44%). The changes in the previous month had been 17.98% and 27.54%, respectively.

On the other hand, the increase in tomato prices (18.69%) was higher than in September (11.72%) and items whose prices had retreated in the previous month, such as fruits (-1.59%) and potatoes (-6.30%), registered increases in October (of 2.59% and 17.01%, respectively). Among the decreases, the highlights were onions (-12.57%), carrots (-6.36%) and garlic (-2.65%).

Food away from home went from 0.82% in September to 0.36% in October, manly influenced by the less intense increases in meals (0.41%) and in snacks (0.42%), which had increased by 0.66% and 1.12%, respectively, in the previous month.

In the Transportation group (1.19%), the biggest change came from airfare prices (39.83%), which contributed with 0.12 pp in the October IPCA, the biggest individual impact on the month’s index. There was an increase in airfare prices in all surveyed areas, ranging from 21.66% in Porto Alegre to 49.71% in Curitiba. The second biggest contribution in the group (0.04 pp) came from gasoline, whose prices increased 0.85%, decelerating in relation to the 1.95% rise observed in the previous month. Another highlight was voluntary vehicle insurance, with an increase of 2.21%, after seven consecutive months of drops.

The second biggest change in October came from Household articles (1.53%), whose increase was influenced, especially, by household appliances (2.38%), which accelerated in comparison to September (0.47%) and contributed with 0.02 pp to the month’s index. There was also an acceleration in the bed, bath and table articles (from 0.82% to 1.92%), furniture (from 1.10% to 1.55%), repair and maintenance (from 0.47% to 1.30%), and utensils and decorations (from 0.46% to 0.72%). The prices of TV, sound and computer equipment (1.07%) also increased, but decelerated in comparison to September (1.99%).

Wearing apparel (1.11%) increased for the second month in a row, accelerating in relation to September (0.37%). Jewelry and costume jewelry rose 1.98% and accumulated in the year a high of 13.66%. The prices of men’s wearing apparel (1.76%), women’s wearing apparel (0,76%), and children’s wearing apparel (1.00%) also increased, as well as footwear and accessories (0.78%).

In Housing (0.36%), the biggest impact in the month’s index (0.01 pp) came from bottled gas (1.27%). The result of electricity, in turn, was 0.03%, with the areas ranging from -2.71% in São Luís to 1.55% in Porto Alegre. There were tariff increases or reductions in three areas: Brasília (-0.44%): reduction of 0.63%, in effect since October 22; Goiânia (0.45%): increase of 2.57%, in effect since October 22; and São Paulo (-0.21%): increase of 3.87% in one of the concessionaries, in effect since October 23. In São Paulo, despite the tariff rise, there was a reduction in the PIS/COFINS rate in one of the surveyed concessionaries, which provoked the negative result in the area.

Moreover, in Housing, it is also worth mentioning the positive change in the water and sewage rate (0.29%), which reflects the rise of 5.88%, in force since October 1^st, in the tariffs in one of the concessionaires in Porto Alegre (2.70%).

The indexes of the 16 areas surveyed recorded an increase in October. The biggest result was that of the municipality of Rio Branco (1.37%), due to the rise in food items, such as beef (9.24%) and rice (15.44%). The lowest index was that of the metropolitan area of Salvador (0.45%), influenced by the drop of the gasoline prices (-2.32%).

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 September 29th to October 27th, 2020 were compared with the prices in force from August 28th to September 28th, 2020.  

Due to the COVID-19 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 October rises 0.88%

The National Consumer Price Index (INPC) of October rose 0.89%, above the 0.87% registered in September. That is the highest result for a month of October since 2010, when the index was 0.92%. In the year, the INPC had a cumulative increase of 2.95% and, in the last 12 months, of 4.77%, above the 3.89% registered in the previous 12 months. In October 2019, the rate was 0.12%.

Food products rose 2.11% in October, decelerating in comparison to the previous month (2.63%). Non-food products rose 0.53%, accelerating against September (0.35%).

The indexes increased in all areas (table below). The municipality of Rio Branco (1.47%) recorded the biggest result, mainly due to the rises observed in some food components such as beef (10.09%), rice (15.44%) and soybean oil (18.00%). The lowest index was that of the metropolitan area of Salvador (0.46%), due to the retreat in the prices of gasoline (-2.32%) and of electricity (-1.83%).

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, and 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 September 29th to October 27th, 2020 (reference) were compared with the prices in force from August 28th to September 28th, 2020 (base).  

.