The Extended National Consumer Price Index (IPCA) was 0.56% in December, and 0.28 percentage points (p.p.) above the rate of November (0.28%). In December 2022, the change had been of 0.62%. IPCA closed the year with a cumulative increase of 4.62%.

All the groups of products and services surveyed recorded price rises in December. The biggest change (1.11%) and the main impact (0.23 p.p.) came from Food and beverages, which accelerated from November (0.63%). The second main contribution (0.10 p.p) came from Transportation, with an increase of 0.48%. The second main change was that of Household articles (0.76%), after a drop of 0.42% in November. Housing (0.34%) decelerated from the previous month (0.48%). The other groups stood between 0.04% of Communication and 0.70% of Apparel.

After rising by 0.63% in November, Food and beverages increased by 1.11% in December. Food at home rose by 1.34%, due to increases in potato (19.09%), pinto beans (13.79%), rice (5.81%) and fruits (3.37%). Long life milk dropped for the seventh consecutive month (-1.26%). .

Food away from home (0.53%) acelerated from the previous month (0.32%). Both snacks (0.74%) such as meals (0.48%) recorded increaes above those of November (0.20% and 0.34%, respectively).

In the group Housing (0.34%), residential electricity rose by 0.54% due to rises of 13.00% in Rio Branco (7.62%), since December 13 and of -1.41% in one of the concessionnaires in Porto Alegre (0.72%), since November 22.

Also in Housing, the rise of water and sewage (0.85%) was influenced by changes of 15.76% in Belém (15.76%), since November 28th; of 4.97% in one of the concessionnaires surveyed in Porto Alegre (2.46%), since December 1st; and of 10.23% in Rio de Janeiro (2.45%), since November 8th. The subitem piped gas rose by 1.25%, due to the price adjustment of 3.30% in São Paulo (2.27%), since December 10 and and average proce adjustment of 0.98% in Rio de Janeiro (0.03%), in effect since November 1st.

In the group of Transportation (0.48%), the result was influenced by the increase in the prices of airfares (8.87%), sub-item accounting for the biggest individual contribution (0.08 p.p.) to the monthly index. All fuels (-0.50%) recorded fall of prices: diesel (-1.96%), ethanol (-1.24%), gasoline (-0.3%) and vehicle gas (-0.21%).

Also in Transportation, the change in urban buses (-0.61%) resulted from the free rides on Sundays in São Paulo (-4.17%), in effect since December 17. Also, there was a price adjustment of 6.12% in Salvador (2.55%), starting in November 13, and of 16.67% in Belo Horizonte (0.67%), in effect since December 29.

As for regional indexes, Aracaju (-0.29%) was the only area to record a negative change in December, due to the fall of prices of gasoline (-11.53%). The main change was that of Rio Branco (0.90%), as a result of the rise of electricity (7.62%).

 INPC rises by 0.55% in December

The National Consumer Price Index (INPC) rose by 0.55% in December, 0.45 p.p. above the result of November (0.10%). In December 2022, the rate was 0.69%.

Food products changed from 0.57% of change in November to 1.20% in December. The change in non-food products was also higher: 0.35% in December against the drop of 0.05% in the previous month.

As for the regional indexes, Aracaju (-0.22%) was the only area with negative change in December, due to drops in the prices of gasolina (-11.53%). The main change was that of Belo Horizonte (0.85%), driven by rises in potato (29.15%) and banana (15.81%).

IPCA closes 2022 with an increase of 4.62%

The IPCA closed the year with a cumulative change of 4.62%, below the 5.79% registered in 2022. The result of 2023 was mainly influenced by the group of Transportation (7.14%), which recorded the biggest impact (1.46 p.p.) cumulative index in the year. It was followed by Health and personal care (6.58%) and Housing (5.06%), with impacts of 0.86 p.p. and 0.77 p.p., respectively. Food and beverages, accounting for the main contribution to the IPCA, rose by 1.03% in the year.

In Transportation, the rise of gasoline (12.09%) stands out. This subitem accounted for the main contribution to the month’s IPCA and for the main impact (0.56 p.p.) in 2023. The second main item was licensing and vehicle plates (21.22% and 0.53 p.p.) Having risen by 47.24% and contributed with 0.32 p.p. to the cumulative index in the year, airfare accounted for another important increase. The prices of new cars (2.37%) rose at a lower rate than in the previous year (8.19%) and used cars (-4.80%) also fell in 2023.

As for Health and Personal care (6.58%), the main contribution (0.43 p.p.) came from health insurance (11.52%). In June, the National Regulatory Agency for Private Health Insurance and Plans (ANS) set the top value of the new individual healthcare plans (after Law no. 9,656/98) at 9.63% for the period May 2023-April 2024. From October onwards, the fractions related to the old healthcare plans began to be incorporated, retroactively to July. The rise of 5.83% of pharmaceuticals also stands out. The price adjustment of up to 5.60% in medicines went into effect on March 2023.

In Housing (5.06%), the main positive contribution came from residential electricity (9.52% and 0.37 p.p.). It is worth of notice that, throughout 2023, the gree tariff flag was in effect, that is, there was no additional charge in electricity bills. Other highlights were water and sewage fees (10.08%), condo fees (6.74%) and residential rent (3.21%). On the other hand, gas cylinder dropped by 6.89%, with an impact of -0.10 p.p on the cumulative index in the year.

The result of Food and beverages (1.03%) was influenced by the fall of prices of food at home (-0.52%). The highlights were soybean oil (-28.00% and -0.09 p.p.), chicken pieces (-10.12% and -0.07 p.p.) and meats (-9.37% and -0.27 p.p.). The prices of soybeans dropped in 10 of the 12 months in 2023. The prices of meats and chicken pices fell between January and September and, fro October on, they rose again.

Food away from home, in turn, rose by 5.31%. While meals increased by 4.34%, snacks rose by 7.24%.

As for regional indexes, Brasília (5.50%) was the area with the biggest change in 2023, mainly influenced by rises in airfares (93.57%), health insurance plans (11.79%) and gasoline (9.44%). The lowest result was that of São Luís (1.70%), driven by the fall of prices of meats (-13.52%) and gas cylinder (-15.40%).

INPC rises by 3.71% in the year

The cumulative rate of the INPC in 2023 was 3.71%, below the 5.93% of 2022. Food products rose by 0.33%, whereas non-food products changed by 4.83%. In 2022, the group Food and beverages had risen by 11.91%, whereas non-food products had risen by 4.08%. The table below shows the results by group of products and services.

As for regional indexes, the highest rate was that of the metropolitan area of Belém (4.97%), due to the rise of licensing and car plates (28.69%) and of gasoline (15.16%). The lowest changes was registered in São Luís (1.62%), whose result was influenced by the fall of prices of meats (-12.59%) and gas cylinder (-15.40%).

In order to estimate the index of the month, the prices collected from December 01, 2023 to December 29, 2023 (reference) were compared with the prices in force from October 31 to November 30, 2023 (base).

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 in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. The INPC has been calculated by the IBGE since 1979, and it refers to households with monetary income ranging from 01 to 05 minimum wages, with a salaried householder, encompassing the same locations as the IPCA.