Driven by gasoline, the IPCA rose to 1.25%, the highest result for October since 2002

O Broad Consumer Price Index (HICP) — which measures the inflation country –, was 1.25% in October compared to 1.16% in the previous month. The acceleration seen in the index came mainly due to fuels.

The value came above market expectations, whose projection was around 1.05%.

The result of the month is greater for the period since 2002, when the index was 1.31%, informed the Brazilian Institute of Geography and Statistics (IBGE) this Wednesday (10).

In the year, the indicator accumulates high of 8.24% and, in 12 months, of 10.67%. In the previous month, the accumulated in 12 months was lower (10.25%).

The value is far above the ceiling of the target set by the government, of 5.25%. Target center is 3.75% with 1.5 percentage point tolerance range up or down.

In September, it was the first time that the index reached double digits in this period in five and a half years.

The IBGE found an increase in the prices of all nine groups of products and services surveyed, especially transport (2.62%), driven by the value of fuel (3.21%).

In this group, gasoline alone increased by 3.10%, the biggest individual impact on the month’s index (0.19 pp).

The institute points out that this was the sixth consecutive rise in the prices of this fuel, which accumulates 38.29% of variation in the year and 42.72% in the last 12 months.

“Transport had the biggest variation and the biggest impact (0.55 pp) by far on the month’s index, says IPCA manager Pedro Kislanov in a note.

The result comes amid a series of readjustments announced by Petrobras in the price of fuel sold to refineries.

In addition to gasoline, other fuels also increased in the month: diesel oil (5.77%), ethanol (3.54%) and vehicle gas (0.84%).

Another highlight of the transport group was airline tickets, up 33.86%. The IBGE highlights that this item advanced in all regions surveyed, ranging from 8.10% in Rio Branco to 47.52% in Recife.

The institute adds that, in addition to the price of fuel, the exchange rate depreciation affects the price of tickets. This movement has been intensifying as the opening of activities gains strength with the cooling of the pandemic.

“The advance of vaccination has led to an increase in the flow of people and passenger traffic at airports. As supply has not yet adjusted to demand, this could also be contributing to the rise in prices,” says Kislanov in a statement.

This effect also impacts the price of transport per application, which rose by 19.85% in the month.

All areas surveyed had higher prices in October. The biggest variations were in the metropolitan region of Vitória and in the municipality of Goiânia, both with 1.53%.

other groups

The group of foods and beverages had the second contribution of the index, with an increase of 1.17%. the highlights of this group were tomatoes (26.01%) and English potatoes (16.01%).

Food away from home, on the other hand, increased from 0.59% in September to 0.78% in October.

The housing group increased 1.04% in the month, influenced by electricity (1.16%). The IBGE highlights that, despite the increase, there was a slowdown in this item compared to September (6.47%).

Other highlights were clothing (1.80%) and household items (1.27%).