The Extended National Consumer Price Index (IPCA) of October was 0.59%, putting an end to a sequence of three months in deflation: in July, August and September, the changes had been of -0.68%, -0.36% and -0.29%, respectively. In the year, the IPCA has recorded a cumulative increase of 4.7% and, in 12 montha of 6.47%, below the 7.17% registered in the previous 12 months. In October 2110, the rate 1.25%.

Of the nine groups of products and services surveyed, eight rose in October. The biggest contribution in the month, 0.16 percentage points (p.p.) came from Food and beverages (0.72%), which had decreased 0.51% in September. It was followed by Health and Personal care (1.16%) e Transportation (0.58%), with impacts of 0.15 p.p. and 0.12 p.p., respectively. The three groups together accounted for about 73% of the October IPCA. The main increase in the month was recorded by Wearing apparel (1.22%).

The only group recording a decrease in October was Communication (-0,.8%), being responsible for -0.03 p.p. The others ranged between 0.18% in Education and 0.57% in Personal expenses.

The group Food and beverages recorded an increase of 0.72% driven by food at home (0.80%). The highlights were potatoes (23.36%) and tomatoes (17.63%), which ,together, accounted for 0.07 p.p. of the monthly index. Onion (9.31%) and fruits (3.56%) also recorded increases. As for drops, the highlights were long life milk (-6.32%), which had fallen by 13.71% in September and soybeans (-2.85%), ehich recorded its fifth decrease in a row.

The change of food away from home (0.49%) stood next to that of the previous month (0.47%). Whereas snack decelerated from 0.74% in September to 0.30% in October, meals took an opposite path, with a change from 0.34% to 0.61%.

<>Inhealth and personal care(1.16%), the biggest contributionca came from personal hygiene (2.28%) and health insurance (1.43%), with impacts of 0.09 p.p. and 0.05 p.p., respectively. Among personal hygiene items, perfumes (5.71%) and make up articles (3.90%) stood out.

The result of health insurance is a consequence of the price adjustments granted by the National Regulatory Agency for Private Health Insurance and Plans(ANS) for contracts signed before Law no. 9,656/98 (older plans) went into force, being effected from July on. In October IPCA-15 included the monthly fractions of the old plans relative to the months of July, August, September and October.

Transportation went from -1.98% in September to an increase of 0.58% in October. The drop in fuels (-1.27%) was less significant than in the previous month (-8.50%). Gasoline (-1.56%), diesel (-2.19%) and vehicle gas (-1.21%) remained on a downward trend, whereas ethanol recorded an increase of 1.34%. In addition to that, there was significant rise in airfare prices (27.38%), main individual contribution to the October IPCA (0.16 p.p.).

The prices of ride sharing transportation, which had risen 6.14% in September, fell by 3.13% in October. The subitem urban buses (-0.23%) remained on a downward trend and reflected a drop in fare prices on Sundays in Salvador (-2.99%). in effect since September 11.

The result of Wearing apparel was influenced by hikes in male wear (1.70%) and female wear (1.19%). In the last 12 months, the cumulative change in the group was 18.48%, the biggest among the nine groups of products that form the IPCA.

Housing (0.34%) decelerated in relation to September (0.60%), due to the fall of bottled gas (-0.67%), whose prices had risen 0.92% in the previous month, and to the deceleration of electricity (0.30%) against September (0.78%). Changes in the subitem electricity ranges between -9.88% in Curitiba and 13.03% in São Luís. In São Paulo (-0.17%), there was price adjustment of 2.07% in one of the concessionnaries starting on October 23 and, in Goiânia (-0.72%), there was price adjustment of 5.35% in fares starting on October 22. Despite price adjustments, the result of both areas was negative due to reductions in PIS/COFINS.

After the enactment of Complementary Law 194/22, the services of transmission and distribution were excluded from the calculation basis of the ICMS in the states that regulated such exclusion. However, cases in which the charges remained in force were pinpointed. In this respect, adjustments were made in the October IPCA-15 and IPCA to offset the exclusion of the ICMS, aiming at accounting only what was effectively charged from consumers.

It should be highlighted that, in a voluntary way, some concessionaires also decided to exclude transmission and distribution services from the calculation basis of the ICMS. The standard electricity bill has also accounted for this scenario, excluding such services from the calculation basis of the ICMS in these cases.

Also inHousing, the rise in water and sewage fares (0.74%) results from the average adjustment of 13.22% in fares of one of the concessionnaries in Porto Alegre (6.40%), since September 29.

The result ot Communication (-0.48%) was driven downwards by the subitem mobile telephony (-2.05%), which accounted significantly for -0.03 p.p. of the monthly index. . The decrease in the group, however, was less significant than that is September (2.08%).

As for the regional indexes, all the areas registered a positive change in October. The biggest change was that of Recife (0.95%), due to hikes in electricity (9.66%) and airfares (47.37%). The lowest index was that of Curitiba (0.20%), as a result of drops in the prices of electricity and gasoline (-2.40%)..

In order to estimate the index of the month, the prices collected from September 29 to October 27, 2022 (reference) were compared to those in force from August 30 to September 28, 2022 (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.

INPC rises 0.47% in October

The National Consumer Price Index (INPC) increased by 0.47% in October. The cumulative index in the year has had a cumulative increase of 4.81% and, in the last 12 months, of 6.46%, below the 7.19% recorded in the previous 12 months. In October 2021, the rate was 1.16%.

Food products changed from a drop of 0.51% in September to an increase of 0.60% in October. The prices of non-food products had the same movement and the change went from -0.26% in September to 0.43% in October.

As for the regional indexes, all the areas recorded increase in October. The smallest change was observed in Curitiba (0,07%), (0.07%), due to drops in electricity (-9.80%) and gasoline (-2.40%). The biggest result came from Recife (0.88%), driven by electricity (9.78%) and by personal hygiene items (3.12%)./p>

In order to estimate the index of the month, the prices collected from September 29 to October 27, 2022 (reference) were compared with the prices in force from August 30 to September 28, 2019 (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.