Brazil's January inflation hits 0.16%, the lowest since 1994
January's official inflation slowed to 0.16 percent, the lowest for the month since 1994—before the Real Plan was introduced in July of that year.
The slowdown in the Broad National Consumer Price Index (IPCA), released on Tuesday (Feb. 11) in Rio de Janeiro by the Brazilian government´s statistics agency IBGE, is attributed to the Itaipu Bonus—a discount on electricity bills received by 78 million Brazilians last month.
In December 2024, the IPCA stood at 0.52 percent. The slowdown does not mean that prices have fallen, but rather that, on average, they have risen at a slower rate.
On the other hand, food and transportation prices pushed inflation higher. Transportation rose 1.3 percent, adding 0.27 percentage points to the index, while food and beverages increased for the fifth consecutive month, up 0.96 percent and contributing 0.21 percentage points to January's IPCA.
Over the past 12 months, the IPCA reached 4.56 percent, exceeding the government's target. In December, the rate stood at 4.83 percent.
The inflation target set by the National Monetary Council (CMN) is 3 percent, with a tolerance of 1.5 percentage points, allowing a range of 1.5 percent to 4.5 percent .
Starting this year, the target will be based on the 12 months immediately preceding, rather than just the December result. The target will only be considered breached if it exceeds the tolerance range for six consecutive months.
