IPCA: Food and beverages drive inflation in January

In Short:

The main inflation indicator in Brazil, the IPCA (National Consumer Price Index), rose by 0.42% in January. According to data released by IBGE on Thursday (8), inflation decreased by 0.14 percentage points compared to December's rate (0.56%), but still surpassed market projections. Over a 12-month period, the IPCA slowed from 4.62% to 4.51%, also exceeding the median estimate of 4.43%. Analyst forecasts ranged from 4.24% to 4.62%.

The price of food and beverages saw the largest increase in January, accelerating by 1.38% after a 1.11% increase in December.

With January's result, the 12-month IPCA is slightly above the inflation target ceiling of 4.50%. In 2023, the index recorded an increase of 4.62%, below the target ceiling for the period, set at 4.75%.