IPCA: prices rise 0.56% in December and rise 4.62% in 2023

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The result comes within the range of the inflation target for the year, defined by the National Monetary Council (CMN). It is the first time that the target has been met since 2020. inflation, consumption, market, prices, economy, food, supermarket Adriana Toffetti/Ato Press/Estadão Content The Broad National Consumer Price Index (IPCA), considered the official inflation of country, shows that prices rose 0.56% in December, according to data released this Thursday (11) by the Brazilian Institute of Geography and Statistics (IBGE). This month, the highlight was the Food and beverages group, which recorded the biggest change (1.11%) and the biggest impact (0.23 percentage points) on the general index. The month’s result represents a strong acceleration, as the IPCA had closed November with an increase of 0.28%. In December 2022, it increased by 0.62%. As a result, the country had an accumulated inflation of 4.62% in 2023. The result, therefore, comes within the range of the inflation target for the year, defined by the National Monetary Council (CMN). It is the first time that the target has been met since 2020. All groups surveyed by IBGE had an increase in the month. But the Food and beverage group, mainly responsible for the 2023 disinflation, was the highlight of the increase for the second month in a row. There was an acceleration in both fresh products and food trade. According to IBGE, the Food at home subgroup rose 1.34% in December. The highlights were potatoes (19.09%), carioca beans (13.79%), rice (5.81%) and fruits (3.37%). Food away from home increased by 0.53% in the month, accelerating compared to the previous month (0.32%). The institute highlights the increases in snacks (0.74%) and meals (0.48%), which rose more than in November (0.20% and 0.34%). “The increase in temperature and the greater volume of rain in several regions of the country have influenced food production, especially fresh foods, such as tubers, vegetables and fruits, which are more sensitive to these climate variations”, explains the IPCA manager , André Almeida. See the results of the IPCA groups: Food and beverages: 1.11%; Housing: 0.34%; Household items: 0.76%; Clothing: 0.70%; Transport: 0.48%; Health and personal care: 0.35%; Personal expenses: 0.48%; Education: 0.24%; Communication: 0.04%. Inflation target The country has not even reached the target ceiling since 2020. The target system determines that the Central Bank (BC) must manage the basic interest rate, the Selic, to bring inflation to a specific number to each year. The person who determines this number is the National Monetary Council (CMN), made up of the ministers of Finance, Planning and the BC president himself. In 2023, the inflation target was 3.25%, with a tolerance margin of 1.5 percentage points more or less (from 1.75% to 4.75%). As a report from g1 showed, the IPCA slowed down more than expected by economists throughout this year. Last year’s first Focus bulletin — a report released by the BC with the numbers expected by more than 100 financial institutions in the country — showed that experts predicted closed inflation of 5.31% in 2023. Inflation within the target is important because it allows to the Central Bank (BC) to continue the path of reducing the basic interest rate, the Selic. FGV economics professor Joelson Sampaio also reinforces that controlled inflation tends to result in two main points: positively impacting family income; and allow a reduction in the interest rate. “So, the Selic rate — combined with the inflationary improvement in the external scenario — explains this convergence of inflation towards the target in 2023”, concludes Joelson, remembering the global inflationary peak following the Covid-19 pandemic and the war in Ukraine. In addition to him, g1 listened to economists to understand what changed, what factors brought inflation back to the target and what the scenario is for 2024. Find out more here. INPC increased by 0.55% in December The National Consumer Price Index (INPC) — which is used as a reference for adjustments to the minimum wage, as it calculates inflation for families with lower incomes — increased by 0.55% in December. In November, there was an increase of 0.10%. Thus, the INPC accumulated an increase of 3.71% in 2023. “The accumulated result for the year of the INPC was below the IPCA mainly due to the greater weight that the food and beverages group has within the basket”, explains André Almeida, from IBGE.

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