
IPCA was below market expectations, but food and air tickets continue to put pressure on the index
AI-generated summary
The IPCA is the index that measures official inflation in Brazil. In September, the index had registered 0.82%. In October, food rose by 1.04% on average, while the electricity bill became cheaper with the change from the yellow tariff flag to the green one and gasoline reduced in price in the transport group.
"Tomatoes, zucchini, green beans, okra don't like rain. They like clear weather, sun. And they only have these tomatoes because of the greenhouses. Because if they were from the field, there wouldn't be any tomatoes", says market vendor Domingos Fonseca.
"There's no way to avoid buying tomatoes, because we have to use tomatoes. But then I reduce the quantity", says housekeeper Eunice Ramose.
Food rose, on average, 1.04% in October. The IPCA, the index that measures official inflation, was 0.14%, after having registered 0.82% in September. Other components contributed to holding the index. Important help came from the housing group. The main reason was the electricity bill: the change from the yellow tariff flag to the green one removed the additional energy charge. The transport group fell, benefiting especially from the reduction in gasoline prices.
The IPCA came in below market expectations. But, according to economists, the prices of many products and services continue to put pressure on inflation. This is the case of air tickets, which were 9% cheaper in October, but were experiencing an equivalent increase in September. The rise and fall of tickets depends on the season, just as food prices are linked to variations in the weather. Uncertainties that increase the government's challenge of closing the year within the inflation target.
"We have to do the domestic economy. This means that we will choose some products that are more affordable - in general, they are seasonal products - and also look at the offers", says journalist Isabel Clavelin.
AI outlook — possibilities, not facts
The government is expected to announce new measures to contain food inflation in the coming months
Possible · Within weeks

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The soybean sector rejects Banco do Brasil's accusation that agribusiness would be responsible for a bad balance sheet, stating that rural producers are not deadbeats. Other highlights include the PGR's defense against the annulment of Bolsonaro's conviction, a driver who fled a flood by climbing on the roof of a car and getting into a truck, 14 foreigners on the run in passport fraud, the denial of an injunction by Zanin for the second round for governor in Rio de Janeiro, and the maintenance of the start of the 5x2 scale on December 16 by Dino, with a pending plenary decision.
Soybean sector rejects Banco de Brasil's accusation that agribusiness caused a bad balance sheet, stating that rural producers are not deadbeats. Other highlights include a storm in Greater SP, a driver who fled the flood by climbing on the roof of his car, the PGR's position on Bolsonaro's criminal review, passport fraud with 14 fugitive foreigners and Zanin's decision on the second round for governor in RJ.