Inflation in Brazil resumed an upward trend in October. October’s Broad National Consumer Price Index (IPCA), announced today by the Brazilian Institute of Geography and Statistics (IBGE), amounted to 0.44%, up from September’s 0.33%. The IPCA is used by the government to target its goals for inflation.
The biggest impact came from the hike in fuel prices. Gasoline was 1.45% more expensive, due to the price readjustment at the refinery level. Alcohol cost 5.315% more at the fuel pump.
October also saw increases in the prices of airline tickets (5.03%), new cars (1.29%), and items of apparel (1.12%).
Food prices, on the other hand, were lower for the second month in a row (-0.19% in September and -0.23% in October).
Produce prices dropped the most, with declines of 17.16%, 27,87%, and 16.74% in carrots, onions, and tomatoes, respectively.
Including October’s result, the IPCA has risen 5.95% altogether so far this year. This is less than last year’s 8.37% during the same period.
Over the past 12 months, the index has risen 6.86%, slightly higher than the 6.70% for the immediately preceding 12-month period. The monthly rate in October, 2003, was 0.29%.
Calculation of the IPCA is based on families with monthly incomes ranging from 1 to 40 minimum wages (260 reais or US$ 87) in the metropolitan areas of São Paulo, Curitiba, Porto Alegre, Fortaleza, Belo Horizonte, Belém, Rio de Janeiro, Salvador, and Recife, as well as Goiânia and Brasília.
Translator: David Silberstein