American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Brazil’s inflation (IPCA) in Jan 2025: Transport and food prices rise the most

by admin February 12, 2025
February 12, 2025
Brazil’s inflation (IPCA) in Jan 2025: Transport and food prices rise the most

In January, the Broad National Consumer Price Index (IPCA), Brazil’s official inflation measure, rose only 0.16% month-on-month, according to the Brazilian Institute of Geography and Statistics (IBGE).

On February 11, the number reduced to 0.16% from 0.52% in December, following a 0.36 share reduction and exceeding BCB’s estimates.

The rate stayed over the central bank’s upper tolerance zone of 4.5%, supporting the expectation that the monetary authority will raise interest rates again in March, as previously stated in December.

However, that means the path for managing inflation over the next few months will now be a very different trajectory.

Inflation gaps in transport and food

By analyzing the IPCA, IBGE noted that there was heterogeneity in the sectors, with five of the nine categories surveyed registering price increases in January.

The data shows that the Transport and Food and Beverage groups had the greatest impact on selling prices this month, contributing significantly to inflation.

The transport prices jumped 1.30% and added an expressive 0.27 percentage points to the IPCA.

The increase is attributed to higher expenses in the movement of goods and services as well as fuel price changes.

Likewise, the Food and Beverage category recorded an increase of 0.96%, which contributed to 0.21 percentage points.

Such trends highlight the ongoing strain on consumers in key expenditure categories.

Electricity prices in Brazil

In January, the average price of residential electricity fell by 14.21%, causing the most significant decrease in inflation.

This reduction was mainly the result of the inclusion of the Itaipu Bonus in bills paid by consumers, a government measure that seeks to alleviate part of the consumer’s financial burden with energy costs.

Cuts in energetic costs are usually viewed as an important driver of inflation and in this instance, the decline had a strong negative impact of -0.55pp on the total IPCA.

Consequently, the Housing aggregated index fell by 3.0% in January, where electricity has proven to be a strong contributor to this cut, generating a countercyclical effect to inflation.

Water and sewage rates increased by 0.97% on average in the Housing category, while piped gas increased by 0.49%.

This suggests that, despite cheaper power, the other factors driving up housing prices continue to climb.

The post Brazil’s inflation (IPCA) in Jan 2025: Transport and food prices rise the most appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Fed Chair Powell says no need to rush in adjusting policy stance or cutting interest rates
next post
US is the leader in AI, and plans to keep it that way: VP JD Vance at Paris Summit

Related Posts

Six people killed during campaign event in southern...

May 18, 2024

China holds key lending rates steady, prioritizing financial...

February 20, 2025

Bitcoin Pepe presale accelerates as Bitcoin eyes $90K...

March 20, 2025

Bitcoin ETF options fuel US crypto market surge

November 20, 2024

A 5,000-pound satellite is expected to fall to...

February 20, 2024

Trump’s third term? Constitutional amendment proposed in the...

January 24, 2025

50,000 protest Georgia’s foreign agent bill as US sounds...

May 13, 2024

Milei’s tax amnesty program brings $18 billion to...

November 3, 2024

Trump holds talks with top CEOs amid low...

March 12, 2025

Malayan tiger teeters on ‘brink of extinction’ as...

July 15, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Bulgaria plans for continuous oil supply for Lukoil-owned refinery after US sanctions

      October 26, 2025
    • Apple Q4 earnings preview: here’s what to expect

      October 26, 2025
    • France’s offshore wind ambitions stalled by political turmoil

      October 26, 2025
    • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

      October 26, 2025
    • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

      October 26, 2025

    Categories

    • Business (4,373)
    • Investing (3,014)
    • Latest News (2,103)
    • Politics (1,541)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved