Official inflation remains at 0.32% in January, under pressure from prices of meals and buses | Economy

The accumulated index in 12 months was 3.78%, slightly above the 3.75% recorded in the previous 12 months.

Taking into account only the months of January, it is the highest inflation since 2017 (0.38%). In the 12-month accumulation was also the highest percentage since 2017 (5.35%).

In 2018, the official inflation closed the year at 3.75%, which is lower than the center of the target of 4.5% set by the government. In 2019, the central objective to pursue is slightly lower: 4.25%.

Monthly price change in 19659007 Source: IBGE

Food and bus cards soared during the month

According to IBGE badyst Pedro Kislanov da Costa , the food and beverage group, was the biggest pressure on inflation in January.

Basic product on the table of Brazilians, The beans of Rioja experienced the largest increase of the month (19.76%) representing 0.03 percentage point (pp) of the 39; index. However, the highest individual impact in this group comes from fruits whose average prices increased by 5.45% and by 0.06 pp

. Other highlights were: onion (10, 21%), meat (0.78%) and long-life milk (2.10%) . On the other hand, the tomato fell by 19.46% .

Outflows also accelerated and rose 0.79% in January. Highlights were increases in snacks (0.91%) and meals (0.90%) .

However, if we consider the general index, the element that had the strongest impact in January was the city buses, whose rates showed a high average of 2.67% or 0.07 pp of the indicator.

"Adjustments were made in five of the 16 regions, namely São Paulo, Belo Horizonte, Vitória, Fortaleza and São Luís.It should be remembered that São Paulo has a great influence on the index," he said. said the IBGE badyst. the largest contribution to inflation insurance in January was gasoline (-2.41%) lowering the January IPCA index of 0, 11 pp.

If it was not for the pressure of bus fares, the transport group, which had a slight increase of 0.02% in the month, would have recorded a deflation, according to the report. 39; badyst.

See below the January inflation of the groups surveyed and the impact of each on the general index:

• Food and beverages: 0.90% (0.22 point of percentage)
• Housing: 0.24% ((0.10%)
• Articles of residence: 0.32% (0.01 pp)
• Clothing: -1.15% (-0.07 )
• Transportation: 0.02% 1 pp)
• Health and Personal Care: 0.26% (0.03 pp)
• Personal Expenses: 0.61% (0.07 pp)
• Education: 0.12% (0.01 pp) Financial Education: Understand What's Inflation and How It Affects Your Life Financial Education: Understand What's Inflation and How It Affects Your Life Financial Education: Understand What's Inflation and How It Affects Your Life Financial Education: Understand What's Inflation and How It Affects Financial Education: Understanding What's Inflation Inflation and its impact on life

By 2019, badysts of instit Financial institutions have lowered their inflation expectations from 4% to 3.94%, according to the Central Bank's latest Focus survey. This was the third It was also the first time the market had estimated that the IPCA would be below 4% this year.

The inflation target is set by the National Monetary Council (NMC). To do this, the Central Bank raises or lowers the basic interest rate of the economy (Selic), which was maintained this week for the 7th time followed at 6.5% per annum. The central target for this year is 4.25% and the target system's tolerance range is between 2.75% and 5.75%.

By 2020, the financial market had maintained its estimate of inflation at 4%, which is in line with the central goal, which is also 4% for next year. Next year, the goal will be officially achieved if inflation fluctuates between 2.5% and 5.5%.

The INPC established at 0.36% in 2018