IPCA

Fall in the price of some foods, such as red beans, potatoes and tomatoes, contributed to the deceleration of inflation

Prices begin to give a respite to the Brazilian's pocket. In January, the  Broad Consumer Price Index (IPCA), which measures the country's official inflation, closed at 0.38%. This was the lowest rate for the month since 1994, when the Real Plan was created.

The result for the month was still lower than expected by analysts who make cost-of-living forecasts. According to a Central Bank survey released last Monday (06), they bet on an IPCA of 0.47% in January.

With the number lower than expected,  accumulated inflation in the last 12 months also slowed, going from 6.29% to 5.35%. In this type of comparison, it is the lowest result for January since 2010.

Part of this favorable result was influenced by the prices of some foods, which were cheaper in January. In the list of those who registered a fall in prices are the Rioja beans (-13.58%), the English potato (-8.48%) and the tomato (-5.83%). 

Cheaper energy

In the housing group  , the drop in electricity bills  was less intense. In December, these bills were 3.70% cheaper. In January, the drop was 0.60% and is due to the reduction of PIS / COFINS in most of the regions surveyed.

What is IPCA

The IPCA is calculated by the IBGE since 1980. For the calculation of the index of the month, the prices collected in the period from December 30, 2016 to January 30, 2017 (reference) were compared with the prices in effect from December 1 to 29, 2016 (Base).

Source: Portal Brasil, with information from IBGE