Final year-end inflation for 2004 should be between 7% and 7.5%, according to a Cost of Living (ICV) survey by the union-linked socio-economic statistical study department (Departamento Intersindical de EstatÀsticas e Estudos Sócio-Econômicos) (Dieese).
The Dieese forecast is considered good news.
“São Paulo inflation for the past 12 months has reached 6.8%. The Dieese estimate takes into consideration possible increases in fuel prices and the usual spike in consumer prices during the holiday season,” explains Cornélia Nogueira Porto, who coordinates the Dieese’s ICV survey.
With regard to the ICV, it was up 0.53% in São Paulo in October, an increase of 0.24 percentage points, compared to September. Porto says there was a broad-based price increase in October which affected the index, perhaps because of the approaching holiday season.
São Paulo Inflation
According to the Consumer Price Index (IPC), computed by the Economic Research Institute Foundation (FIPE) and announced today, inflation in the city of São Paulo rose in October.
The IPC closed the month at 0.62%, compared with 0.22% in September.
The greatest increase occurred in the transportation sector (1.32%), followed by the clothing sector (1.10%).
These two groups contributed 0.21% and 0.058%, respectively, to the overall index.
Increases were also registered in the sectors of food (0.28%), personal expenses (0.31%), health (0.38%), and education (0.02%).
The Fipe survey is based on the expenditures of families that live in the city of São Paulo with monthly earnings of between 1 and 20 minimum wages (US$ 92.00 to US$ 1,841.00).
Agência Brasil
Translator: Allen Bennett