Thais Leitão         Reporter Agência Brasil

Rio de Janeiro –The official inflation rate in Brazil, based on the Broad Consumer Price Index (“IPCA”), rose 0.52% in November, compared to October. That was higher than the increase in October, compared to September, when the IPCA rose 0.43%.

According to the government statistical bureau (“IBGE”), which measures the IPCA, the cumulative increase for the year is now at 5.97%, and 6.64% for the last twelve months. The government’s official inflation target for the year is 4.5%, plus or minus two percentage points.

The IBGE says the inflation villain was food prices, up 1.08% in November (food prices rose 0.56% in October). Meat prices, up sharply at 2.63%. led the spike that was blamed on higher demand as the holiday season approaches. Eulina Nunes, a coordinator at IBGE, points out that food prices accounted for 48% of the increase in the IPCA in November. As for meat prices, Nunes says they rose 20% in 2010 and while the increases have been much less this year, they have come with prices "already on a high plateau."

Nunes also points out that the constant rise in prices of services is characteristic of a strong, growing economy – the case of Brazil at the moment. “As income goes up, so do prices,” she says.

The November inflation numbers from the IBGE are based on a survey of eleven metropolitan areas. For the sake of comparison, the IBGE found the biggest price increases in November in Fortaleza, up 0.74%, with a cumulative increase in prices of 5.92% for the year (the November increase in prices in Fortaleza is slightly above the national average, while the cumulative increase for the year is slightly below the national average). Curitiba had the lowest prices increases in November, up 0.30%, but cumulative price increases there for the year reached 6.67% (over 0.7 percentage points above the national average).

Meanwhile, another index, the INPC, which is limited to measuring inflation for families with incomes of up to six minimum wages (R$3,600 per month), was also on the rise, up 0.57% in November, compared to October (after rising 0.32% in October, compared to September). The cumulative INPC for the year is now 5.54%, and for the last twelve months it is up 6.18%.

Allen Bennett – translator/editor The News in English
Link - IPCA sobe e fecha novembro em 0,52%

Link - Alimentos caros e mais dinheiro circulando no fim do ano pressionaram a taxa de inflação em novembro

Link - Região metropolitana de Fortaleza registra o maior IPCA entre as capitais pesquisadas