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Official inflation slows down to 0.25% in January

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The National Broad Consumer Price Index (IPCA), which gauges Brazil’s official inflation, stood at 0.25 percent in January, 1.1 percentage points below the rate in December 2020 (1.35%). The announcement was made in Rio de Janeiro today (Feb. 9) by the government’s statistics agency IBGE.

In the last 12 months, the indicator sees an increase of 4.56 percent, above the 4.42 observed in the 12 months prior. In January 2020, the variation had been 0.21 percent.

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According to IBGE, foods and drinks are still pulling prices up, but not as strongly. The group experienced a sharper price variation in January (1.02%), and the largest positive impact (0.22 percentage points) in the month’s index. But the increase was less intense than December (1.74%).


A change in the calculation of electric energy costs and the reductions in flight ticket prices helped curb inflation in January.

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“There was a 5.6 percent decline in electric energy, which was the single largest negative impact on the month’s index (-0.26 percentage points),” said research manager Pedro Kislanov in a note.

Also according to IBGE, transport costs (0.41%), the group with the second largest weight in the IPCA, also slowed down compared to the previous month *1.36%), especially due to the fall in the flight ticket prices (-19.93%), whose prices had escalated 28.05 percent in December.

IPCA surveys families making one to 40 minimum wages, regardless of source. Brazil’s current minimum wage is $204.95.

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