The official inflation rate measured by the National Consumer Price Index (IPCA) stood at 0.55% in January this year, a lower rate than that of 0.92% reported in December. The rate was also lower than January last year's 0.86%. Within the past 12 months, inflation accumulated at 5.59%. The mid-target range set by the government's monetary policy is 4.5% plus or minus two percentage points.

The decrease in January is primarily traceable to deflation (falling prices) in the cost item group transport (-0.03%), notably airline fares (-15.88%). Clothing and footwear have also shown price decreases (-0.15%). The data was reported Friday (Feb. 7) by the Brazilian Geography and Statistics Institute (IBGE).The prices obtained are those actually charged to consumers for cash payment, and reflect changes in the cost of living for households with monthly incomes of one to 40 minimum wages (currently around $300.00) living in 11 regions throughout the country.

The monthly collection period is between the first and last day of each month, when prices are surveyed from retailers, service providers, households (for rental amounts) and public utilities. Cost items fall into nine product and service groups – food and beverages; household items; communications; personal expenditures; education; housing; health and personal care; transport; and clothing and footwear – each broken down into smaller items, for a total 465 sub-items surveyed.