With the result of 0.52% in December, the country’s official inflation closed 2024 at 4.83%, above the maximum target limit stipulated by the government. In 2023, the Broad National Consumer Price Index (IPCA) had stood at 4.62%.
The data was released this Friday (10), in Rio de Janeiro, by the Brazilian Institute of Geography and Statistics (IBGE).
The government’s inflation target for 2024 was 3%, with a tolerance of 1.5 percentage points (pp) more or less. In other words, the IPCA for the year was 0.33 pp higher. The 2024 result is the highest since 2022 (5.79%).
Throughout 2024, the food and beverage group was the one that put the most pressure on Brazilians’ pockets, with an increase of 7.62%, an impact of 1.63 pp on the IPCA.
Influence of climate
According to the research manager, Fernando Gonçalves, the rise in food prices is explained by “the influence of adverse weather conditions, at various times of the year and in different locations across the country”.
Next, the biggest pressures came from the health and personal care groups (6.09%, impact of 0.81 pp) and transport (3.3%, impact of 0.69 pp). Together, these three groups accounted for about 65% of 2024 inflation.
IBGE investigates the price behavior of 377 products and services. Individually, the thing that put the most pressure on the cost of living was gasoline, which rose 9.71%, representing an impact of 0.48 pp. Next comes health insurance (an increase of 7.87% and an impact of 0. 31 pp) and eating out, which became 5.7% more expensive (impact of 0.2 pp).
