Inflation decelerates in all capitals surveyed by the IPC-S

According to FGV – IBRE, the Weekly Consumer Price Index, the IPC, which measures inflation in the main capitals of the country, varied by 0.08%. All seven surveyed capitals recorded a drop in their rates of change.

The index recorded in the last month was 0.45%. Therefore, the average drop in inflation in the capitals was approximately 46% and represents a significant drop compared to the variations that occurred in previous months.

Register deflation, that is, negative inflation, the capitals Porto Alegre, Rio de Janeiro, Recife and Brasília. The biggest deflation was in the city of Brasília, at -0.65%. Negative inflation, or deflation, represents falling prices.

The other capitals of Salvador, Belo Horizonte and São Paulo only recorded disinflation, that is, a slowdown in price growth. In these capitals, there was only a reduction in price growth, not negative inflation.

However, it is worth mentioning that, despite the recent drop, the index accumulates a rise of 3.01% in the last 12 months among the seven capitals that are part of the index.

In Brasilia, the items that most fell were related to the category of education, reading and recreation, in addition to clothing. The rises were with the sectors of food and housing.

In Belo Horizonte, the main falls occur in the same sectors of the federal capital. The main increases are due to transportation and miscellaneous expenses.

In general, there was a sharp drop in the price of airline tickets in the country, contributing to the drop experienced in this index.

Methodology

The Consumer Price Index – Weekly (IPC-S) measures, every four weeks, the variation in the cost of living for families with income between 1 and 33 monthly minimum wages, in the main capitals of the country. The main sectors cover food, housing, clothing, health and personal care, education, reading, recreation, transport and miscellaneous expenses.

By Brasil 61

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