RIO DE JANEIRO, BRAZIL – Inflation in Brazil dropped to 0.54% in January over the previous month’s 0.73%, the highest result for January since 2016, when it reached 1.27%, reported the IBGE (Brazilian Institute of Geography and Statistics) based on the Extended National Consumer Price Index (IPCA).
The indicator increased 10.38% year-on-year, over the 10.06% reported in the previous 12 months.
IBGE’s research team analyst André Filipe Almeida said the result was mainly driven by foods and drinks (1.11%), which had a stronger impact on the value for the month, 0.23 percentage points.
“Foods in the household (1.44%) had a major influence on this increase—more than foods out of the household, which dropped from 0.98% to 0.25%. Among the top drivers were meats (1.32%) and fruits (3.40%). Despite having decelerated compared to the previous month, they faced the biggest impacts within this group, 0.04 and 0.03 percentage points respectively,” he said.