In October, the IPCA rose 0.09%, a strong slowdown from 0.48% in September and the lowest increase for the month in nearly 30 years – it was 0.02% in October 1998.
Food and beverage prices changed by 0.01% in October, which had no impact on the rate. Electricity prices, in turn, fell by 2.39% after rising by 10.31% in September.
In the case of food, the slight difference came after four months of contraction. Prices benefited from the good 2025 crop, which increases production and supply, which helps reduce prices.
As for electricity, the price decrease reflects the change from Red Flag Level 2, which was effective in September, to Red Flag Level 1. At Level 2, the additional amount on the electricity bill is R$7.87 per 100 kWh consumed, while at Level 1 it is R$4.46.
“The decline in electricity and food prices, which remained practically stable, explains the IPCA rate for October. If you take out food and energy, the IPCA increase was 0.25%,” Fernando Gonçalves stated.
The calculation takes into account that the power supply assembly and electrical power element are not present and redistributes the weight in other components of the IPCA.
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