The IPCA (Broad National Consumer Price Index), which measures official inflation in Brazil, accelerated 0,56% in October, 0,12 pp (percentage point) above the rate recorded in September (0,44%), reported the IBGE (Brazilian Institute of Geography and Statistics) this Friday (8).
Of the nine groups of products and services analyzed, the greatest influence on the October results was the Housing group (1,49%), with a contribution of 0,23 pp to inflation growth.
In this sector, the result was mainly influenced by residential electricity, which rose 4,74% due to the validity of the red tariff flag at level 2 – which adds R$7,877 to every 100 kWh consumed.
In addition, the following tariff adjustments were verified during the period:
- Goiânia (9,62%), with a 4,97% adjustment starting October 22;
- Brasília (5,49%), with a reduction of 2,98% as of October 22;
- São Paulo (6,00%), with a reduction of 2,88% in one of the dealerships as of October 23.
This is the second consecutive month that the price of electricity has been the main driver of inflation in the country. In September, the percentage increase was 5,36%.
In addition to the Housing sector, another important group surveyed by IBGE that helped to raise inflation in October was “Food and Beverages”, with a 1,06% increase in prices and a contribution of 0,23 pp to the final IPCA result.
Inflation in Brazil has accumulated an increase of 3,88% this year and, in the last 12 months, 4,76%, which is an indicator above the 4,42% observed in the 12 months immediately before.
How is the IPCA calculated?
The IPCA has been calculated by the IBGE since 1980 and refers to families with monetary income of 1 to 40 minimum wages, who live in ten metropolitan regions of the country, in addition to the cities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.
To calculate last month's index, prices collected in the period from September 28 to October 29 (reference) were compared with prices in effect in the period from August 30 to September 27, 2024 (base).
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