Inflation in supermarkets was 7.93% in 2016

The IPS (supermarket price index) inflation indicator calculated by Apas/Fipe closed the year 2016 with high of 7.93 percent. The search index monthly 225 items in six categories in supermarkets and demonstrates the price variation over time, allowing the monitoring of the evolution of the costs to the consumer of the supermarket sector.
By way of comparison to 2015, inflation in 12 months in December 2015 was 11.33%, so there is a slowdown when compared with the previous year, due to the behaviour of prices verified over 2016.
The variation of the IPS in 2016 posted a first half with high expressive and in June 2016, the index pointed to a high in 12 months to 13.76%. However, in the second half the economic recession linked to the most favourable prices behavior FLV (fruit, vegetables), mainly contributed to the deceleration in prices of food in General, with favorable impacts the prices of supermarkets.
"In this way, the behaviour of prices had two antagonistic periods: the first half of the year, which registered a significant acceleration of inflation in the face of price acceleration, especially, of the items that make up the Group of FLV and rising price of beans, and the second half, with the significant slowdown of these items, contributing to a more moderate developments in general prices in supermarkets" , explains Rodrigo Mariano, Manager of economy of Apas.
The prices of industrial products closed 11.61% 2016 with high, impacted mainly by the increase in the price of milk, which was reflected in an increase in the prices of milk products (17.55%). The oils also pushed the prices of industrial products along with high 2016 12.84%, in the face of rising prices of soybeans. Another item that pressed industrial prices was sugar, which contributed significantly to the rise of prices in the Group of sweeteners with high of 24.47 percent.
Last year there was 5.61% fall in the category of Fresh Products, with emphasis on the reduction of vegetables ( -24.49%), given the reduction in the prices of tomatoes ( -26.86%), peppers (20.65%), carrots (2.75%) and reduction in prices of tubers ( -28.12%), with the price drop on potatoes ( -11.78%).
Thus, the high expressive checked throughout the first half were reversed and there was slowdown in various items. In some cases there was a reduction in prices in the face of increased availability, mainly of vegetables. The joints of these factors enabled the deflation In Natura Products group contributing to a more favorable behavior of prices in supermarkets in 2016.
The prices of meat, milk and cereals (semi-finished items) recorded high of 6% in 2016, a percentage below the General index of the IPS that was 7.93%, and this behaviour was influenced by the deceleration in prices of beef (0.07%) and prices of Pork ( -2.39%). The other items already pushed prices up, as is the case with milk (8.44%) and cereals (18.97%).
The prices of alcoholic beverages showed high in 2016, with a variation of 7.91%, reflecting the rise in the price of wine (23.99%). The non-alcoholic beverages record high of 10.93%, on the elevation, especially the refrigerant (14.89%). The tax increase impacted at high prices with reflexes in sales in this category.
Cleaning prices showed high of 10.23%, impacted mainly by high prices of washing powder, with a variation of 12.60%. Hygiene and beauty articles pointed 7.70% high, impacted by the high prices of SOAP (10.37%) and toothpaste (11.51%).
In December, in which the General was high IPS 0.53%, negative variations were present at 46.85% of items, in accordance with the diffusion index (proportion of negative price changes), and above the average for the last 24 months, that is from 36.56%.
"The prospect for 2017 is more moderate in lifting rates for various categories when compared to the behavior of prices in 2016. Given this, inflation in 12 months until December 2017 must keep around 6% to 7% ", concludes Mariano.