Brazil’s consumer inflation stands at 10.38% y/y in January

Brazil’s consumer inflation increased in the first month of 2022, as the Broad National Consumer Price Index (IPCA) soared by 10.38% y/y, after rising by 10.06% y/y in December. According to the Brazilian Institute of Geography and Statistics (IBGE), which calculates the index, the food-at-home inflation accelerated to 8.6% y/y in January, from 8.2% y/y in December 2021, reflecting higher prices of meat (+10% y/y), coffee (+56.9% y/y), vegetables (+12.9% y/y) and fruits (+4.1% y/y). Transport costs moderated in January, as fuel prices rose by 44.1% y/y, lower than the 49% y/y recorded in December. Electricity prices, however, posted a 27% y/y growth in January, after rising by 21.1% y/y in the previous month.

On a monthly basis, the IPCA rose by 0.54% m/m in January, after surging by 0.73% m/m in November. Notably, prices of home appliances soared by 1.82% m/m, followed by food and beverages (+1.1% m/m), apparel (+1.07% m/m), communication (+1.05% m/m). Housing prices’ growth slowed down to 0.16% m/m, from 0.74% m/m in December, while transportation prices fell by 0.11% m/m in January, following an increase of 0.58% m/m in December 2021.

Brazil’s consumer inflation increased in the first month of 2022

Producer prices remained high in the last month of 2021. The local producer price index (PPI) increased by 28.4% y/y in December – the highest annual reading since the series started in 2014. Otherwise, the IPP slowed down in the last month of the year, as it grew by 29.1% y/y in November. Notably, producer prices for oil refining and alcohol products jumped by 69.7% y/y in December, followed by other chemical products (+64.1% y/y), metallurgy (+41.8% y/y) and wood (+40.8% y/y). The IPP for the extractive industry rose by 13.8% y/y.

Read more about inflation in Brazil.

Brazil consumer inflation is updated monthly, available from December 1980 to January 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.