Despite Cheaper Food, Inflation Up in Brazil

    Inflation in Brazil resumed an upward trend in October. October’s Broad National Consumer Price Index (IPCA), announced today by the Brazilian Institute of Geography and Statistics (IBGE), amounted to 0.44%, up from September’s 0.33%. The IPCA is used by the government to target its goals for inflation.

    The biggest impact came from the hike in fuel prices. Gasoline was 1.45% more expensive, due to the price readjustment at the refinery level. Alcohol cost 5.315% more at the fuel pump.


    October also saw increases in the prices of airline tickets (5.03%), new cars (1.29%), and items of apparel (1.12%).


    Food prices, on the other hand, were lower for the second month in a row (-0.19% in September and -0.23% in October).


    Produce prices dropped the most, with declines of 17.16%, 27,87%, and 16.74% in carrots, onions, and tomatoes, respectively.


    Including October’s result, the IPCA has risen 5.95% altogether so far this year. This is less than last year’s 8.37% during the same period.


    Over the past 12 months, the index has risen 6.86%, slightly higher than the 6.70% for the immediately preceding 12-month period. The monthly rate in October, 2003, was 0.29%.


    Calculation of the IPCA is based on families with monthly incomes ranging from 1 to 40 minimum wages (260 reais or US$ 87) in the metropolitan areas of São Paulo, Curitiba, Porto Alegre, Fortaleza, Belo Horizonte, Belém, Rio de Janeiro, Salvador, and Recife, as well as Goiânia and Brasí­lia.


    Agência Brasil
    Translator: David Silberstein

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