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Official inflation in Brazil ended 2018 at 3.75%



(MENAFN - Brazil-Arab News Agency (ANBA)) Rio de Janeiro â€' The official Brazilian inflation rate, measured by the Extended National Consumer Price (IPCA), ended 2018 in 3.75%. In 2017, it stood at 2.95% . The information was released this Friday (11) by the Brazilian Institute of Geography and Statistics ( IBGE ). Inflation stood within the target established by the Central Bank for 2018, which ranged between 3% and 6%.

In December, IPCA registered a 0.15% inflation, a rate higher than in November, when there was a 0.21% deflation. In December 2017, the index had registered a 0.44% inflation.

The primary reason for the 3.75% inflation in 2018 was the increased cost of foods, whose prices raised 4.04%. In 2017, the food and beverage group registered a price drop of 1.87%. The result was influenced by the truckers strike in May, which provoked supply shortages in food items and an increase in these products prices.

“This [truckers] strike occurred in May, so it had a one-off impact in June on fuels and also on foods because of the shortages in supply. [If the strike had not happened], this would probably imply a lower inflation rate in the accumulated rate of the year,” said the IBGE researcher Fernando Gonçalvez.

Food consumed at home became 4.53% more expensive over the year, while the price of food consumed away from home (in bars and restaurants for example) rose 3.17%. Food products that had a bigger impact on the inflation in 2018 were tomato (71.76% more expensive), fruits (14.1%), meals away from home (2.38%), snacks away from home (4.35%), UHT milk (8.43%) and roll (6.46%).

Other expenses

Other groups of expenses largely impacting the inflation last year were housing (4.72%) and transportation (4.19%). Among the transportation items that became more expensive are air tickets (16.92%), gas (7.24%) and city bus (6.32%). Among expenses with housing, the main impact on the increase in living costs was the power bill (8.7%).

Among the nine group of expenses researched, only communication had a deflation (-0.09%). The other groups had the following price increase rates: house items (3.74%), health and self-care (3.95%), education (5.32%), personal expenses (2.98%), and clothing (0.61%).

December

In December, IPCA registered a 0.15% inflation. Over the month, food was also the main responsible for the the increased prices, with a 0.44% change. On the other hand, transports and house expenses avoided an increase higher than the IPCA in the month, having a 0.54% and a 0.15 deflation, respectively.

Capitals

Among the metropolitan regions and capitals researched by IBGE, Porto Alegre was the one that accumulated a higher inflation in 2018 (4.62%), followed by Rio de Janeiro (4.3%), Vitória (4.19%), Salvador (4.04%) and Belo Horizonte (4%), all above the country average. The smallest inflation rates were seen in Aracaju (2.64%), São Luís (2.65%), Recife (2.84%), Fortaleza (2.9%) and Campo Grande (2.98%).

Translated by Guilherme Miranda

Marcelo Camargo/Agência Brasil/EBC

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Official inflation in Brazil ended 2018 at 3.75%

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