The Extended National Consumer Price Index - IPCA was 0.25% in January, 1.10 percentage points (p.p.) below the rate of December (1.35%). Over the last 12 months, the indicator accrued a rise of 4.56%, above the rate of 4.52% registered in the 12 immediately previous months. In January 2020, the change had been 0.21%.

Of the nine groups of products and services surveyed, seven rose in January. The biggest change (1.02%) and the biggest impact (0.22 p.p.) came from the group of Food and beverages. The second biggest positive contribution (0.08 p.p.) came from Transportation (0.41%) and the second biggest change, from Household articles (0.86%). The group of Housing, in turn, fell in relation to the previous month (-1.07%), with the biggest negative impact (-0.17 p.p.). The other groups stood between the retreat of 0.07% in Wearing apparel and the rise of 0.39% in Personal expenses.

The group of Food and beverages (1.02%) decelerated compared with the December´s figure (1.74%). Having risen 2.12% in the previous month, Food for consumption at home changed 1.06% in January, especially influenced by the less intense rise of fruits (2.67%) and by the drop in the price of meat (-0.08%). The changes of these two items in December were 6.73% and 3.58%, respectively. On the other hand, the prices of onions (17.58%) and tomatoes (4.89%), which had retreated in the previous month, increased in January, contributing with a combined impact of 0.03 p.p. On the dropping side, the highlights, besides meat, were long-life milk (-1.35%) and soybean oil (-1.08%), which accrued a rise of 103.79% in 2020.

Food away from home followed a reverse movement, changing from 0.77% in December to 0.91% in January, particularly due to the rise of snacks (1.83%).

In Transportation (0.41%), the deceleration against the previous month (1.36%) was due, to a large extent, to airfare (-19.93%), whose prices had risen 28.05% in December. Fuels (2.13%), in turn, registered a higher change than that in the previous month (1.56%), highlighted by gasoline (2.17%) and diesel fuel (2.60%). The prices of new cars (1.31%) also increased, contributing with 0.04 p.p. to the months´s figure.

Still in Transportation, the change of 0.04% in urban bus was due to the adjustments of 2.44% in Campo Grande (2.44%), in force since December 30, and of 2.61% in Vitória (1.57%), in force since January 10. In the intercity bus (-0.47%), the adjustments were in Vitória (3.30%), where the fare rose between 2.70% and 4.89% since January 4, and in Fortaleza (2.40%), where the adjustment of 3.99% came into force on January 11.

In Household articles (0.86%), the biggest impact (0.02 p.p.) came from furniture (1.48%), which accrued a rise of 8.82% in the last five months. It was followed by household appliances and equipment (1.58%) and articles of clothing, bed and bath (1.27%).

The deflation noticed in the group of Housing (-1.07%) was especially due to the drop of 5.60% in the item electricity, which was, individually, the biggest negative impact on the month´s index (-0.26 p.p.). After the red tariff flag level 2 came into force in December, the yellow flag was adopted in January, with an increase of R$1.343 per each 100 kilowatt-hour consumed (against R$6.243 in the case of the red flag level 2). The changes of this item in the areas varied from -8.01% in Brasília up to -0.54% in Campo Grande, where PIS/COFINS increased.  On the rising side, the biggest impact on the group (0.04 p.p.) came from bottled gas (3.19%), whose prices rose for the eighth month in a row.

Still in Housing, the positive change of piped gas (0.22%) was due to the adjustment of 0.79% in the fares in São Paulo (0.36%), in force since January 15. In water and sewage fees (0.19%), the result was due to the adjustments in Campo Grande (4.90%), Recife (2.03%) and Vitória (0.28%).

In the group of Health and personal care (0.32%), it is worth mentioning the result of the item health plan (0.66%). In January, the first parcel of the monthly fraction of the annual adjustment suspended in 2020 was incorporated.

In Personal expenses (0.39%), the highlights were sub-items notary (7.82%), tourism package (1.86%), cigarettes (1.14%) and banking services (0.79%), the last one impacting 0.01 p.p. on the month´s index.

Concerning the regional indexes, only two out of 16 areas surveyed recorded a negative change. The lowest figure was reported in the municipality of Goiânia (-0.17%), influenced by the drop of 7.53% in electricity. The highest index was registered in the municipality of Campo Grande (0.53%), where the rises of gasoline (2.42%) and water and sewage fees (4.90%) weighted.

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 Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

In order to estimate the index of the month, the prices collected from December 30, 2020 to January 28,  2021 (reference) were compared with the prices in force from November 28 to December 29, 2020 (base). It should be mentioned that the IBGE suspended the face-to-face price collection in the points of sale on March 18, 2020, due to the public health emergency caused by COVID-19. As of this date, prices began to be collected through other means, such as surveys on Internet sites, by phone or email.

INPC changes 0.27% in January

The National Consumer Price Index - INPC rose 0.27% in January, whereas it had recorded 1.46% in December. In 12 months, the index accrued a rise of 5.53%, above the rate of 5.45% reported in the 12 immediately previous months. The rate had been 0.19% in January 2020.

Food products rose 1.01% in January, while they had posted 1.86% in the previous month. Non-food products rose 0.03%, after registering 1.33% in December.

Concerning the regional indexes, all the areas pointed out a positive change this month, except for the municipality of Goiânia (-0.25%). The highest figure was recorded in the metropolitan area of Recife (0.61%), due to the rises of gasoline (2.49%) and meat (2.75%). In Goiânia, the retreat was mainly due to electricity (-7.60%).

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 Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

In order to estimate the index of the month, the prices collected from December 30, 2020 to January 28,  2021 (reference) were compared with the prices in force from November 28 to December 29, 2020 (base).