The Extended National Consumer Price Index (IPCA) reached 0.54% in January, being 0.19 percentage points (p.p.) below the December´s rate (0.73%). It was the highest change for January since 2016 (1.27%). Over the last 12 months, the indicator accumulated a rise of 10.38%, above the rate of 10.06% recorded in the immediately previous 12 months.  In January 2021, the monthly change had been 0.25%.

Eight out of nine groups of products and services surveyed recorded price rises in January. The highest change came from Household articles (1.82%), which accelerated in relation to December (1.37%). It was followed by Food and beverages (1.11%), the biggest impact on the month´s index (0.23 p.p.), Wearing apparel (1.07%) and Communication (1.05%). On the other hand, the change in Housing (0.16%) was lower than that in the previous month (0.74%). Having risen 0.58% in December, the only group to drop was Transportation (-0.11%). The other groups stayed between the rate of 0.25% in Education and 0.78% in Personal expenses.

The result of Household articles (1.82%) was mainly influenced by the acceleration in household appliances and equipment (2.86%), furniture (2.41%) and TV, sound and computers (1.38%), whose changes had been 1.77%, 2.07% and 0.70% in December, respectively. Altogether, those items contributed with 0.06 p.p. to the January´s IPCA.

In Food and beverages (1.11%), food at home changed from a rise of 0.79% in December to 1.44% in January. The major highlights were fruits (3.40%) and meat (1.32%), though they registered less intense rises than in the previous month (8.60% and 1.38%, respectively). Moreover, the prices of ground coffee (4.75%) increased for the 11th consecutive month, accumulating a rise of 56.87% in the last 12 months. Other highlights were carrots (27.64%), onions (12.43%), potatoes (9.65%) and tomatoes (6.21%). On the dropping side, the prices of rice (-2.66%), whole chicken (-0.85%) and chicken pieces (-0.71%) retreated.

Food away from home (0.25%) decelerated in relation to the previous month (0.98%). Meals changed from 1.08% in December to 0.44% in January, whereas snack changed from 1.08% in December to -0.41% in January.

In the group of Wearing apparel (1.07%), the rises in men’s wearing apparel (1.64%), footwear and accessories (0.97%) and women’s wearing apparel (0.78%) stood out, jointly exerting an impact of 0.04 p.p. on the January´s IPCA. The other items of this group also rose, highlighted by children´s wearing apparel (0.87%) and jewelries (1.18%).

The group of Housing (0.16%) decelerated in relation to the previous month (0.74%), due to electricity (-1.07% and -0.05%), whose change had been 0.50% in December. The Water Scarcity tariff flag has been in effect since September, adding R$14.20 to the electricity bill at each 100 kWh consumed.

The changes in the areas varied from -6.81% in Porto Alegre, where PIS/COFINS and the ICMS reduced, up to 3.34% in Rio Branco, where it was adjusted by 10.66% since December 13. Moreover, street lighting fare was adjusted on January 1st in Brasília (2.13%), São Paulo (0.50%) and Curitiba (-1.40%).

Still in Housing, the drop of 0.73% in bottled gas stood out, after rising for 19 months. The rise in piped gas (3.13%) was due to the adjustment of 17.64% in São Paulo (5.46%), in force since December 10. Water and sewage fees (0.15%) also increased in January, due to the adjustment of 6.70% in Campo Grande (6.06%) on January 1st.

The drop in the group of Transportation (-0.11%) was mainly due to the drop in the prices of airfare (-18.35%) and fuels (-1.23%). Besides gasoline (-1.14%), the prices of ethanol (-2.84%) and vehicular gas (-0.86%) also dropped. Diesel fuel (2.38%) was the only one to rise in January. Among the other sub-items of this group, the highlights were ride sharing apps (-17.96%) and car rental (-3,79%).

Also in Transportation, the prices of motorcycles (2.45%), new cars (2.19%) and used cars (1.53%) continued to rise. The positive change in taxi cabs (1.23%) reflected the adjustment of 9.75% in the fares in Rio de Janeiro (5.66%), in effect since January 11. Urban bus (0.22%) was adjusted in Fortaleza (3.99%), with an average rise of 8.55% since January 15; Vitória (3.05%), adjusted by 4.84% since January 9; and Campo Grande (1.91%), with an adjustment of 4.75% since January 17.

Except for Porto Alegre (-0.53%), all the areas surveyed rose in January. The highest change occurred in the municipality of Aracaju (0.90%), due to tomatoes (34.90%) and fruits (6.41%). In the metropolitan area of Porto Alegre (-0.53%), the prices of electricity (-6.81%) and gasoline (-6.20%) dropped.

In order to estimate the month´s index, the prices collected from December 29, 2021 to January 28, 2022 (reference) were compared with the prices in force from November 30 to December 28, 2021 (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. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

INPC was 0.67% in January

The National Consumer Price Index (INPC) rose 0.67% in January, below the result of the previous month (0.73%). It was the highest change for January since 2016 (1.51%). Over the last 12 months, the INPC accumulated a rise of 10.60%, above the rate of 10.16% recorded in the immediately previous 12 months.  The rate had been 0.27% in January 2021.

Food products accelerated from 0.76% in December to 1.08% in January. Non-food products decelerated, changing from 0.72% in December to 0.54% in January.

Except for Porto Alegre (-0.52%), all the areas surveyed rose in January. The highest change was registered in the municipality of Aracaju (0.96%), influenced by the rise in the prices of tomatoes (34.90%) and fruits (7.22%). The negative change reported in the metropolitan area of Porto Alegre (-0.52%) was mainly due to the drops in electricity (-6.62%) and gasoline (-6.20%).

In order to estimate the month´s index, the prices collected from December 29, 2021 to January 28, 2022 (reference) were compared with the prices in force from November 30 to December 28, 2021 (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.