September inflation in Brazil rises to 0.44%
Household electricity bills drove inflation up to 0.44 percent in September, according to the National Broad Consumer Price Index (IPCA) report released on Wednesday (Oct. 9) by the Brazilian government´s statistics agency, IBGE. This marks an increase of 0.46 percentage points from the previous month (-0.02%), primarily influenced by the housing sector (1.8%), which reflected the adjustment in residential electricity tariffs.
During the period, energy costs surged from -2.77 percent in August to 5.36 percent in September. The food and beverage sector also contributed to the IPCA's acceleration, rising by 0.5 percent after two consecutive months of decline.
Year-to-date inflation stands at 3.31 percent, while over the past 12 months, the index has reached 4.42 percent.
The shift from a green tariff flag in August, which incurred no additional charges, to a red level-one flag due to reservoir levels was the main driver of the increase," explained André Almeida, the survey's manager, in a statement released by IBGE. "The red flag at level one adds roughly BRL 4.46 for every 100 kWh consumed.”
Food consumption in Brazilian households increased by 0.56 percent, driven by rising prices of beef and fruits like oranges, lemons, and papayas.
"Regarding meat, the severe drought and dry conditions significantly reduced supply," Almeida explained. "It's important to note that we saw price declines during most of the first half of 2024 due to high slaughter rates. However, the off-season is now being further impacted by the weather."
When it comes to dining out, the price variation in September (0.34%) remained nearly the same as the previous month (0.33%).
The personal expenses category saw the largest decline in the survey, dropping by 0.31 percent, which contributed a -0.03 percentage point impact. The subcategory for cinema, theater, and concerts experienced a significant 8.75 percent decrease, impacting the overall index by -0.04 percentage points.
"In September, a national campaign called Movie Week featured various chains offering promotional prices for an entire week. These discounts contributed to the over 8 percent decline in this subcategory," added the IBGE analyst.
