The Extended National Consumer Price Index (IPCA) was 0.62% in December, being 0.21 percentage points (p.p.) above the November´s rate (0.41%). In December 2021, the change had been 0.73%. As a result, the cumulative IPCA in 2022 was 5.79%, below the rate of 10.06% accumulated in 2021.

All the groups of products and services surveyed recorded price rises in December. The highest change (1.60%) and the biggest impact (0.21 p.p.) came from Health and personal care, which accelerated in relation to the November´s figure (0.02%). The second biggest contribution, 0.14 p.p., came from Food and beverages, which rose 0.66%. Altogether, the two groups accounted for nearly 56% of the total impact of IPCA in December.

The second highest change, in turn, came from Wearing apparel (1.52%), whose result stood above 1% for the fifth month in a row. Transportation (0.21%) and Housing (0.20%) decelerated in relation to the previous month, when they registered 0.83% and 0.51%, respectively. The other groups stood between 0.19% (Education) and 0.64% of Household articles.

The rise in the group of Health and personal care (1.60%) was related to the rise of personal hygiene items (3.65%), especially toiletries (9.02%). In November, the prices of toiletries fell 4.87%. With the rise in December, that sub-item contributed with the biggest individual impact on the month´s index (0.09 p.p.). In addition, the prices of makeup articles (5.42%) and skin products (3.85%) rose as well. Health insurance plans (1.20%) repeated the same change as in the previous month, reflecting the incorporation of the monthly fraction of the adjustments of new and old plans for the 2022-2023 cycle.

The result of the group of Food and beverages (0.66%) was pressed by food at home (0.71%).  The rises in tomatoes (14.17%), carioca beans (7.37%), onions (4.56%) and rice (3.77%) stood out. On the dropping side, the prices of long-life milk (-3.83%) dropped for the fifth month in a row, contributing with -0.03 p.p. to the December´s IPCA.

In food away from home (0.51%), snacks (1.10%) accelerated against November (0.42%), whereas the result of meals (0.19%) stood below the previous month (0.36%).

In the group of Wearing apparel (1.52%), women’s wearing apparel registered the highest change (2.10%) and the biggest impact (0.03 p.p.) among the items surveyed. In addition, the prices of men’s wearing apparel (1.55%), children´s wearing apparel (1.46%) and footwear and accessories (1.09%) also rose more than 1% in December.

The group of Transportation (0.21%) changed less than in the previous month (0.83%), influenced by the drop in the prices of gasoline (-1.04%). The prices of diesel fuel (-2.07%) and vehicular gas (-0.45%) also retreated. Ethanol (0.48%) was the only fuel to rise in December. Airfare (0.89%), whose prices had retreated 9.80% in November, was the other component of this group that rose. It should also be highlighted the rise in the sub-item toll (3.00%), due to the adjustments of 10.20% and 12.00% in several toll stations in São Paulo (3.95%) on December 16.

The deceleration in the group of Housing (from 0.51% in November to 0.20% in December) was due to the less intense rises in residential rent (0.40%) and residential electricity (0.20%). The changes in electricity in the regions varied from -3.54% in Rio de Janeiro, where the fare of one of the concessionaires surveyed reduced 5.99%, up to 8.77% in Rio Branco, due to the adjustment of 14.48% in the residential fare on December 13. Adjustments of 21.54% were also registered in Brasília (6.66%), in force since November 3, and of 3.62% in one of the concessionaires in Porto Alegre (2.30%), in force since November 22.

Also in Housing, the positive change in water and sewage rate (0.50%) resulted from the adjustments of 10.15% in Belém (9.51%), in force since November 28, and of 11.82% in Rio de Janeiro (3.65%), in force since November 8. The increase in piped gas (3.67%) reflected the adjustment of 10.89% in the residential fare in São Paulo (7.01%) since December 10. In Rio de Janeiro (-0.31%), the drop in piped gas was due to the reduction of 2.47% in the fare since November 1st.

All the areas recorded positive changes in December, the highest one being in Rio Branco (AC) (1.32%), due to the rise in electricity (8.77%). The lowest figure was reported in Rio de Janeiro (0.33%), where the drop in electricity (-3.54%) was followed by retreats in the prices of food products, like long-life milk (-4.70%) and fruits (-3.49%).

In order to estimate the month´s index, the prices collected from November 30 to December 27, 2022 (reference) were compared with the prices in force from October 28 to November 29, 2022 (base).

IPCA closes 2022 with rise of 5.79%

The IPCA ended the year with a change of 5.79%, below the rate of 10.06% registered in 2021. The table below shows the monthly changes of the index in 2022.

The result of 2022 was mainly influenced by the group of Food and beverages (11.64%), which recorded the biggest impact (2.41 p.p.) on the cumulative index in the year. It was followed by Health and personal care, with a change of 11.43% and an impact of 1.42 p.p. The highest change came from the group of Wearing apparel (18.02%), which rose above 1% in ten out of 12 months of the year. The group of Housing (0.07%) stood close to stability and Transportation (-1.29%) reported the biggest drop and the most intense negative impact (-0.28 p.p.) among the nine groups surveyed. The table below shows the results of the groups of products and services.

The rise of 11.64% in the group of Food and beverages was pressed by food at home (13.23%).  The highlights were onions (130.14%), which registered the highest rise among the 377 sub-items that comprise the IPCA, and long-life milk (26.18%), which contributed with the biggest impact (0.17 p.p.) among the food for consumption at home. The prices of milk rose more intensely between March and July 2022, when the cumulative rise in the year reached 77.84%.

By the end of the off-season period in August, the prices began to drop until the end of the year, especially in September (-13.71%). In the case of onions, the rise is related to the reduction in the planted area, increase of production cost and climate issues. Other highlights were potatoes (51.92%), fruits (24.00%) and French bread (18.03%).

Food away from home, in turn, rose 7.47%. While meals increased 5.86%, snacks rose 10.67%.

In the group of Health and personal care (11.43%), the major contribution (0.61 p.p.) came from the items of personal hygiene (16.69%), especially toiletries (22.61%) and hair products (14.97%). Having risen 6.90% and having impacted 0.25 p.p. on the cumulative IPCA in the year, health insurance plans were another highlight. By the end of May, the National Regulatory Agency for Private Health Insurance and Plans (ANS) established the ceiling of the new individual plans (after Law no. 9,656/98) at 15.50% for the period of May 2022 to April 2023.

From October onwards, the fractions related to the old plans began to be incorporated, retroactively to July. The rise of 13.52% of pharmaceuticals should be highlighted as well. On April 1st, 2022, the adjustment of 10.89% in the prices of medicines established by the Drug Market Regulation Chamber (CMED) came into force, depending on the therapeutical class and on the competition profile of the substances.

In the group of Wearing apparel (18.02%), the prices of women’s wearing apparel (21.35%) and men’s wearing apparel (20.77%) rose above 20% in the cumulative index in the year. The changes of children´s wearing apparel and of footwear and accessories stayed at 14.41% and 16.83%, respectively, whereas jewels (3.67%) recorded the lowest change among the items surveyed. The price of cotton, one of the major raw materials in this sector, significantly rose between April 2020 and May 2022. The production costs increased and the demand resumed after the flexibilization of the social distancing measures due to the Covid-19 pandemic.

In the group of Housing (0.07%), the major positive contributions came from residential rent (8.67%), water and sewage fees (9.22%) and condominium fees (6.80%). Together, the three sub-items contributed with nearly 0.62 p.p. to the cumulative IPCA in 2022. The rises of nearly 20% in cleaning products (19.49%) and of slightly more than 6% in bottled gas (6.27%) should be mentioned. On the other hand, residential electricity fell 19.01%, with an impact of -0.96 p.p. on the cumulative index in the year.

Although the standard electricity bill takes into account several components, the establishment of maximum ICMS rates by Complementary Law no. 194/22 was key to the retreat of electricity prices, coupled with the maintenance of the green tariff flag between April and December, after the adoption of the water scarcity flag in the first months of the year. The monthly changes and tariff flags are shown in the following table:

In the group of Transportation, the major positive impact (0.49 p.p.) came from the sub-item car licensing (22.59%). The rise of the IPVA (vehicle tax) in 2022 was mostly due to the increase in the price of cars in 2021, since the charge is based on the commercial value of vehicles in the end of the previous year. The prices of new cars (8.19%) and used cars (2.30%) continued to rise in 2022, though in a lower pace than that registered in 2021 (16.16% and 15.05%, respectively).

Having risen 23.53% and contributed with 0.14 p.p. to the cumulative index in the year, airfare was another important rise. On the dropping side, gasoline (-25.78%) stood out, being responsible for the most intense negative impact (-1.70 p.p.) among the 377 sub-items that comprise the IPCA. The prices of gasoline dropped more significantly between July and September, due to several reductions in the price in the refineries and also to Complementary Law 194, which limited the charge of the ICMS on fuels in the states.

The metropolitan area of Rio de Janeiro (6.65%) registered the highest change in 2022, influenced by the rises in voluntary insurance (45.36%), car licensing (29.22%) and pharmaceuticals (16.98%). The lowest result, in turn, was recorded in the metropolitan area of Porto Alegre (3.61%), pressed downward by the drops of 30.90% in the prices of gasoline and of 33.18% in residential electricity.

INPC rises 0.69% in December

The National Consumer Price Index (INPC) rose 0.69% in December, 0.31 p.p. above the result of November (0.38%). In December 2021, the rate had been 0.73%.

Food products changed from 0.55% of change in November to 0.74% in December.  The change in non-food products was also higher: 0.67% in December against the rise of 0.32% in the previous month.

As for the regional indexes, all the areas rose in December. The highest rise was registered in the municipality of Rio Branco (1.40%), pressed by the rise in electricity (8.76%). The lowest figure was recorded in the metropolitan area of Rio de Janeiro (0.21%), influenced by the drop of 3.59% in electricity.

In order to estimate the index of the month, the prices collected from November 30 to December 27, 2022 (reference) were compared with the prices in force from October 28 to November 29, 2022 (base).

INPC closes the year with a rise of 5.93%

In 2022, the INPC closed the year with a rise of 5.93%, below the rate of 10.16% recorded in 2021. Food products changed 11.91%, whereas non-food products changed 4.08%. In 2021, the group of Food and beverages had changed 7.71% and non-food products, 10.93%. The table below shows the results by group of products and services.

Concerning the regional indexes, the highest rate was registered in the metropolitan area of São Paulo (7.22%), especially due to car licensing (23.66%) and housing rent (10.48%). The lowest change was reported in the metropolitan area of Porto Alegre (3.05%), whose figure was influenced by the retreat in the prices of gasoline (-30.90%) and residential electricity (-32.79%).