Brazil’s inflation stands at 10.54% y/y in February

Brazil’s consumer inflation increased in the second month of 2022, as the Broad National Consumer Price Index (IPCA) soared by 10.54% y/y, after rising by 10.38% y/y in January. According to the Brazilian Institute of Geography and Statistics (IBGE), which calculates the index, the food-at-home inflation accelerated to 10.14% y/y in February, from 8.6% y/y in January, reflecting higher prices of tubers, roots, and vegetables (+22% y/y). Transport costs moderated in February, reflecting a deceleration of fuel prices from a 44% y/y growth in January to a 33% y/y growth in February. Electricity prices, however, posted a 28% y/y growth in February, after rising by 27% y/y in the previous month. The segment of education recorded a substantial inflation in February, by 6.1%, compared to 2.9% in January, as educational institutions usually adjust their tuition fees according to inflation in the beginning of the year.

This is the second increase in a row

On a monthly basis, the IPCA rose by 1% m/m in February, after surging by 0.54% m/m in January. Prices on the education segment rose by 5.6% m/m in the second month of the year, and prices of food and beverages increased by 1.36%, amid adverse weather conditions which negatively impacted some crops. Hence, prices of potatoes and carrots rose, respectively, by 23.5% m/m and 55% m/m in February. Prices of home appliances soared by 1.76% m/m, followed apparel (+0.88% m/m), housing (+0.54% m/m), transport (+0.46% m/m), and health and personal care (+0.47% m/m).

In January 2022, Brazil's producer price index (IPP) increased by 25.5% y/y, following a growth of 28.45% y/y in the previous month. Notably, producer prices for coke, petroleum products and biofuels jumped by 64.8% y/y in the first month of 2022, followed by other chemical products (+56.7% y/y), metal products (+33% y/y) and metallurgy (+31.6% y/y). The IPP for the extractive industry rose by 11.3% y/y in the month.

Read more about inflation in Brazil.

Brazil's inflation is updated monthly, available from December 1980 to February 2022. The data reached an all-time high of 6819.78% y/y in April 1990 and a record low of 1.65% y/y in January 1999.

Further data and analysis on the Brazil economy are available on the CEIC Brazil economy in a Snapshot – Q1 2022 report.