The Extended National Consumer Price Index (IPCA) of December was 0.52%, and stood 0.13 percentage points (p.p) above the November rate (0.39%). In December 2023, the index changed by 0.56%. IPCA closed the year with a cumulative increase of 4.83%.

Except for Housing (-0.56%), the other groups of goods and services recorded increases in December. Food and beverages, followed by Transportation, with an increase of 0.67% and 0.14 pp, accounted for the biggest changes (1.1%) and the main index (0.25%). Wearing apparel (1.14%) recorded the biggest change in December, after a drop of 0.12% in November.

Food and beverages had its fourth consecutive increase (1.18%) in December. Food at home rose by 1.17%, influenced by the rise of beef (5.26%), where ribs (6.15%), rump (5.74%) and sirloin (5.49%) stood out, besides soybean oil (5.12%) and ground coffee (4.99%). The main drops were those of lemon (-29.82%), potato (-18.69¨%) and long life milk (-2.53%).

Food away from home (1.19%) accelerated from the previous month (0.88%), with meals (1.42%) being the subitem accounting for the main individual contribution (0.05 p.p), followed by snacks, with a change of 0.96% and 0.02 p.p.

In Transportation (0.67%), the result was influenced by the rise of prices of ride sharing transportation (20.70%) and airfares (4.54%). Fuels rose 0.70%, with the following changes: ethanol (1.92%), diesel (0.97), gasoline (0.54) and vehicle gas (0.49%).

Also in Transportation, the change in urban bus fares (-0.65%) was influenced by free fares on December 25 in São Paulo (-3.45%). Train (3.77%) and subway (3.90%) recorded increases due to the incorporation of free fares granted on the day of the ENEM (university entrance) test, in São Paulo (7.07%).

In Housing (-0.56%), residential electricity fell by 3.19%, driven by the restart, in December, of the green tariff flag, without additional charge. In November, the yellow tariff flag was in effect, adding R$ 1.885 to each 100 kWh consumed.

Also in Housing, water and sewage fares (0.70%) was influenced by the rise of 9.83% in Rio de Janeiro (9.15%), starting on December 1st. The subitem piped gas (-0.01%) reflects the drop of 0.51% in fares in Rio de Janeiro (-0.03%), in effect since November 1st.

The biggest regional change was found in Salvador (0.89%), driven by the rise of beef (7.31%) and gasoline (4.04%). The lowest change was that of Belo Horizonte, due to the drop of residential electricity (-2.41%).

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.

In order to estimate the index of the month, the prices collected from November 29 to December 27, 2024 (reference) were compared with the prices in force from October 30 to November 28, 2024 (base).

INPC hits 0.48% in December

The National Consumer Price Index (INPC) recorded an increase of 0.48% in December, 0.15 p.p. above the result of November (0.33%). in December 2023, the rate was 0.55%. Food products decelerated from November (1.62%) to December (1.12%). The change of non-food products went from -0.08% in November to 0.27% in December.

As for regional indexes, the biggest change was observed in Salvador (0.84%), influenced by the rise of beef (6.87%) and gasoline (4.04%). The smallest change was that of Belo Horizonte (0.22%), driven by the drop in potato (-26.29%).

In order to estimate the index of the month, the prices collected from November 29 to December 27 (reference), 2024 were compared with the prices in force from October 30 to November 28, 2024 (base).

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. 

IPCA has cumulative increase of 4.83% in 2024

IPCA closed the year at 4.83%, 0.21 p.p. above the 4.62% registered in 2023. The table below shows monthly changes of the index in 2024:

The result of 2024 was mainly influenced by Food and beverages (7.69%), which accounted for the main impact (1.63 p.p.) on the cumulative index in the year. In the second and third positions came Health and personal care (6.09%) and Transportation (3.30%), with impacts of 0.81 p.p. and 0.69 p.p., respectively. The three groups, together, accounted for approximately 65% of the reusult in the year. 

The result of Food and beverages (7.69%) was influenced by the the rise of prices of food at home (8.23%). The highlights were beef (20.84% and 0.52 p.p.), ground coffee (39.60% and 0.15 p.p.), long life milk (18.83% and 0.13 p.p.) and fruits (12.12% and 0.14 p.p.). With reference to beef, drops were registered in six of the twelve months of 2024. The rpices of ground coffee recorded increases throughout the year.

Food away from home rose by 6.29%, surpassing meals, with an increase of 5.70% and 0.20 p.p. of increase, and snack (7.56% and 0.13 p.p. of impact).

In Health and personal care (6.09%), the biggest contribution (0.31 p.p.) came from health insurance (7.87%). In June, the  National Regulatory Agency for Private Health Insurance and Plans (ANS) set the limit for price adjustment of new individual plans (after Law no. 9,656/98) by 6.91% for the period of May 2024 to April 2025. In October, fractions relative to old insurance plans started to be incorporated, with validity since July. Other highlights are the rise of 5.95% of pharmaceuticals - the price adjustment of 4.50% in medicines – and of 4.22% in items of personal hygiene.

Transportation (3.30%), highlights were the rise of gasoline (9.71%), subitem of greatest relevance (4.96%) among the 377 subitems that form the IPCA, responsible for the main impact (0.48 p.p.) in 2024. Ethanol (17.58% and 0.10 p.p.), car repair (5.88% and 0.10 p.p.) and new cars (2.85% and 0.09 p.p.).

In Housing (3.06%), the main contributions came from condos (6.25% and 0.14 p.p.),residential rents (3.45% and 0.13 p.p.), water and sewage rates (5.17% and 0.10 p.p) and bottled gass (7.04% and 0.09 p.p.). Residential electricity, second most relevant subitem to the IPCA, closed the year with a drop of 0.37%.

It is worth mentioning that all the tariff flags went into effect in 2024: the green one (with no extra charge), from January to June, in August and in December; the yellow one (with an additional RS1.885 per 100 Kwh), in July and November; the red one level 1 (with an extra R$4.463 per 100 Kwh), in September; the red one level 2 (with an extra R$7.877 per 100 Kwh), in October. 

São Luís (6.51%) recorded the highest change in 2024, mainly due to the rise of gasoline (14.24%) and beef (16.01%). The lowest result, in turn, was that of Porto Alegre (3.57%), with onion (-42.47%), tomato (-38.58%) and airfares (-16.94%) as highlights.

INPC closes 2024 at 4.77%

The cumulative increase of INPC in 2024 was 4.77%, 1.06 p.p. above the 3.71% of 2023, with food products registered an increase of 7.60%, whereas non food products changed by 3.88%. In 2023, the changes were, respectively, 0.33% and 4.83%. The tablebelow presents results by groups of products and services.

As for regional indexes, the biggest change was registered in São Luís (6.20%), mainly due to the increases of beef (15.10%) and gasoline (14.24%). The lowest change was that of Porto Alegre (3.63%), whose result was influenced by the prices of onion (-42.47%) and tomato (-38.58%).