Low-income inflation drops 0.09% in September, FGV points out

In 12 months, indicator accumulates an increase of 3.81% the consumer price index-Class 1 (IPC-C1)-which measures the price variation of products and services for families with income between one and 2.5 minimum wages-showed deflation of 0.09% in September, after Increase of 0.11% a month earlier, Fundação Getulio Vargas (FGV) reported. The IPC-Br, which measures the price high for families with income from one to 33 monthly minimum wages, did not register variation, coming from a 0.17% advance in August. With this result, IPC-C1 accumulates a high of 3.81% in the last 12 months, versus 3.51% of the general indicator. In the previous reading, inflation of the less favored pointed to a cumulative price high of 4.11%, compared to 3.97% for consumers in general in the same time interval. Of the eight classes of expenditure evaluated, they rose less between August and September housing (0.95% to 0.26%), transport (0.05% to 0.03%) and communication (0.68% to 0.54%). Feed left 0.46% decrease for 0.72% retreat. In these groups, FGV highlights the behavior of the items: residential electricity Tariff (3.10% to 0.38%), fuel alcohol (4.28% to 1.33%), residential telephone fare (1.54% to 0.18%) and alcoholic beverages (2.79% to-0.95%). On the other hand, they showed advances in their rates of variation from the eighth to the ninth month of 2019 health and personal care (0.01% to 0.22%) and education, reading and recreation (0.04% to 0.37%). They left the field negative clothing (-0.44% to 0.03%), and miscellaneous expenses (-0.07% to 0.13%). The main difference between IPC-C1 and IBC-Br is the weighting of the basket of products and services to reach the final indicator. As, for poorer families, food usually has greater relevance within the total expenses, for example, this expense class has a weight of almost 40% in IPC-C1 versus 27% in IPC-Br. Similarly, education has a weight of almost 9% in the inflation of households that Receive up to 33 minimum wages and 2.5% for the less wealthy. Their differences, in addition to the weight of each item or category of expenditure, are also in the cities surveyed. While IPC-Br is collected in seven capitals (São Paulo, Rio, Belo Horizonte, Salvador, Recife, Porto Alegre and Brasília), IPC-C1 is limited to raising prices in Rio, São Paulo, Recife and Salvador. Both IPC-Br and IPC-C1 are based on collections from the first to the last working day of each month.