IPCA-15 grows 1.06% in December and closes 2020 at 4.23%

December 22, 2020 09h00 AM | Last Updated: December 23, 2020 01h42 PM

The Extended National Consumer Price Index 15 (IPCA-15) rose 1.06% in December and was 0.25 percentage points (p.p.) above the rate of November (0.81%). It was the highest monthly change in the index since June 2018 (1.11%). 

December 2020 1.06%
November 2020 0.81%
December 2019 1.05%
IPCA-E Oct-Nov-Dec 2.84%
Cumulative  in the year
4.23%
Cumulative in the last 12 months
4.23%

The IPCA-E, which is the cumulative IPCA-15 within a quarter, was 2.84% in the last quarter of the year. The cumulative index in 12 months was 4.23%, near the 4.22% registered in the previous 12 months. In December 2019, the IPCA-15 was 1.05%.

In December, only Wearing Apparel decreased: -0.44%. The prices of the other groups surveyed rose. The biggest change (2.00%) and the biggest impact (0.42 pp) were, once again, with Food and Beverages, which ended the year with a cumulative increase of 14.36%. The second largest change came from the Housing group (1.50%), which contributed 0.23 pp to the month's index. Transportation (1.43%) had the second biggest impact (0.29 pp), accelerating in relation to November (1.00%). The same occurred with Education, which went from 0.01% in November to 0.34% in December. The other groups were between the  0.03% of Health and Personal Care and 1.35% of Household Articles.

Group Monthly change (%) Impact Cumulative change (%)

(pp)

October November December December Quarter 12 months
General Index 0.94 0.81 1.06 1.06 2.84 4.23
Food and Beverages 2.24 2.16 2.00 0.42 6.54 14.36
Housing 0.40 0.34 1.50 0.23 2.25 3.10
Household Articles 1.41 1.40 1.35 0.05 4.22 5.29
Wearing Apparel 0.84 0.96 -0.44 -0.02 1.36 -1.75
Transportation 1.34 1.00 1.43 0.29 3.82 1.36
Health and Personal Care 0.28 0.04 0.03 0.00 0.35 1.11
Personal Expenses 0.14 0.14 0.39 0.04 0.67 0.97
Education -0.02 0.01 0.34 0.02 0.33 1.23
Communication 0.23 0.06 0.46 0.03 0.75 3.22
Source: IBGE. Diretoria de Pesquisas. Coordenação de Índices de Preços. Sistema Nacional de Índices de Preços ao Consumidor,

The 2.00% increase in Food and beverages is mainly due to food for consumption at home (2.57%), with highlight to meat (5.53%), rice (4.96%) and fruits (3.62%). The prices of potatoes (17.96%) and soybean oil (7.00%) also increased, although they decelerated compared to the previous month, when the increases were 33.37% and 14.85%, respectively. Among the drops, the highlights were tomatoes (-4.68%), garlic (-2.49%) and long life milk (-0.74%).

Food away from home went from 0.87% in November to 0.58% in December, mainly due to the drop in snacks (-0.11%), whose prices had risen 1.92% in the previous month. Meals, on the other hand, went the opposite way: an increase of 0.86%, compared to the result of 0.49% observed in November.

Housing (1.50%) had the second largest change in the month's index, influenced by the increase in the item electricity (4.08%). After 10 consecutive months of the green tariff flag, in which there is no additional charge on the electricity bill, the red flag, level 2, came into effect in December, with an increase of R$ 6.243 for every 100 kilowatt hours consumed. The changes in the item were from 1.31% in Belém to 6.92% in Goiânia, where there was a 2.57% increase in tariffs on 10/22. In Porto Alegre (6.05%), a 6.58% rise was also observed in one of the concessionaires, in force since 11/22.

Also in Housing, the result of 0.22% of the water and sewage fee is due to the 3.04% increase in Belo Horizonte (1.97%), in force since November 1. The increase of 1.80% in piped gas is a consequence of the 6.25% rise in tariffs in Rio de Janeiro (6.25%), in force sinde 11/24, but retroactive to November 1, by legal decision.

In Transportation (1.43%), the largest contribution (0.14 p.p.) came from airfare, which rose 28.31%. In addition, fuels (2.40%) accelerated compared to November, especially gasoline (2.19%) and ethanol (4.08%). Among the drops, the 0.25% decline in urban buses is due to the 3.19% reduction in the ticket price in Porto Alegre (-3.19%), in force since November 9 and not included in the November IPCA-15.

In Education (0.34%), the greatest impact (0.02 pp) came from regular courses (0.44%), due to the extraordinary price collection carried out in the reference period of December for the IPCA-15. The biggest increase came from the education of young people and adults (3.91%), followed by the subitems day care  centers (1.48%) and secondary education (1.10%). However, the drops in the subitems technical courses (-0.81%) and post-graduation courses (-0.72%) are also noteworthy.

The only group in decline in December was Wearing apparel (-0.44%). There was a decrease in the prices of men's (-0.99%), women's (-0.60%) and children's (-0.03%) clothing, which had risen in November (1.49%, 0.97% and 0.74%, respectively). In addition, there were also falls in jewelry (-0.15%), after six consecutive months of increases.

In December, IPCA-15 rose in all surveyed areas

The last IPCA-15 of the year rose in all surveyed areas. The greatest result was in the Metropolitan Area of Porto Alegre (1.53%), due to the increases in electricity (6.05%) and meat (6.89%). The smallest change was in Brasília (0.65%), mainly due to the 0.62% drop in gasoline prices.

Area Weight by Area (%) Monthly Change (%) Cumulative Chnage (%)
October November December Quarter 12 months
Porto Alegre 8.61 0.77 0.71 1.53 3.04 3.96
Rio de Janeiro 9.77 0.86 0.46 1.28 2.62 3.88
Curitiba 8.09 0.86 0.98 1.27 3.14 3.82
Fortaleza 3.88 1.35 0.66 1.24 3.28 5.79
Salvador 7.19 0.43 0.63 1.18 2.26 4.13
Belo Horizonte 10.04 1.05 1.01 1.13 3.22 4.69
Recife 4.71 1.12 0.31 1.00 2.45 5.06
Goiânia 4.96 1.04 1.26 0.93 3.26 4.03
Belém 4.46 1.33 0.79 0.91 3.06 4.15
São Paulo 33.45 0.96 0.93 0.86 2.78 4.29
Brasília 4.84 0.89 0.67 0.65 2.23 3.07
Brazil 100.00 0.94 0.81 1.06 2.84 4.23
Source: IBGE. Diretoria de Pesquisas. Coordenação de Índices de Preços. Sistema Nacional de Índices de Preços ao Consumidor,

For the IPCA-15 calculation, prices were collected between November 13 and December 11, 2020 (reference) and compared to those in effect between October 14 and November 12, 2020 (base). The indicator refers to families with income from 1 to 40 minimum wages and covers the Metropolitan Areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, in addition to Brasília and the city ​​of Goiânia. The methodology used is the same as that of the IPCA, the difference is in the period of price collection and in the geographic coverage.