Inflation: IPC-S has increased by 3.27% in the last 12 months

A calculation carried out during the third four-week period of May 2024 showed that five of the eight expense classes included in the Consumer Price Index (IPC-S) recorded an increase. The highlight was the Education, Reading and Recreation group, whose increase rate went from -0.17%, in the second four-week period of May 2024, to 0.26% in the third four-week period.
It is worth highlighting that, in this expense class, it is worth mentioning the behavior of the air ticket item, whose price changed by 1.45%, compared to -1.68% in the previous edition of the IPC-S.

According to the President of the Economists Union of São Paulo (SP), Carlos Eduardo Oliveira Jr, such action and its consequences are within normal limits.

“This increase in the weekly consumer price index by 0.49% will have some implications. The first one is the cost of living. Services consumed by families increased, reducing the population’s purchasing power. But there is also market expectation. The acceleration of inflation could change expectations regarding Brazil’s economic performance, mainly affecting investments and consumer confidence”, points out the economist. “However, it is within a controlled range. This increase, in general, does not bring any need for panic or very high risk. It’s within expectations,” he adds.

Online shopping: 18% of those earning up to 2 minimum wages purchased with a US$50 exemption

There were even recorded increases in the rates of change in the groups of Housing (0.26% to 0.32%), Miscellaneous Expenses (0.16% to 0.20%), Communication (0.50% to 0.54 %) and Transport (0.74% to 0.75%). On the other hand, the Clothing, Food and Health and Personal Care groups showed a decrease: (-0.15% to -0.55%), (0.66% to 0.63%) and (0.75 to 0. 74%), respectively.

In the opinion of Wanda Santos, a 63-year-old retiree from Brasília (DF), the expected rise in the IPC-S is making it difficult to spend on expenses.

“In my opinion, prices in general have risen a lot. It is difficult to control the monthly budget. Costs such as food and rent, in particular, have increased significantly,” she says.