Brazil’s Inflation Update: IPCA-15 Reaches 0.35% in September

In September 2023, Brazil’s preliminary inflation measure, the IPCA-15, rose by 0.35%, a slight increase of 0.07 percentage points compared to August’s rate of 0.28%. Year-to-date, the IPCA-15 has accumulated a 3.74% increase, while the 12-month inflation rate stands at 5.00%, surpassing the 4.24% recorded in the previous 12 months.

Key Points:

  • IPCA-E: The IPCA-15, accumulated over the quarter (IPCA-E), registered a 0.56% increase, marking a significant upturn from the -0.97% observed in September 2022.

Inflation Breakdown:

  • Transportation Impact: The surge was notably driven by the Transportation sector, with a substantial 2.02% increase, contributing 0.41 percentage points to the overall index.
  • Groups Overview: Out of the nine groups surveyed, six experienced price hikes in September. Transport, with a 2.02% increase, had the most significant impact, followed by Housing (0.30%) and Clothing (0.41%). Food and beverages, however, observed a decline of -0.77%.

Product-Specific Highlights:

  • Food Prices: The drop in Alimentation et boissons (-0.77%) was influenced by reductions in prices of various items, including potatoes, onions, beans, and meats.
  • Transport Costs: Gasoline prices rose by 5.18%, contributing the most significant individual impact of 0.25 percentage points. Other fuels like diesel and vehicular gas increased, while ethanol experienced a price decrease.
  • Housing Expenses: A 0.66% increase in residential electricity costs was notable, driven by a 9.40% adjustment in Belém. Water and sewage rates also saw an uptick.
  • Health and Personal Care: A 0.17% rise, mainly due to a 0.71% increase in health insurance costs, following authorized adjustments by the National Supplementary Health Agency.

Regional Variances:

  • Salvador Dips: Salvador recorded a negative result of -0.03%, influenced by reduced prices for onions and meats. On the other end, Belém reported the highest variation at 1.00%.

These figures provide a comprehensive overview of Brazil’s current inflation scenario, emphasizing the dynamic nature of price changes across sectors and regions. The IPCA-15 captures a snapshot of inflation trends, offering insights into the nation’s economic landscape.