Brazil inflation for seniors rises above accrued CPI-BR rate in 1Q18
The Consumer Price Index for the Elderly (CPI-3i), calculated by FGV’s Brazilian Institute of Economics (IBRE) – measuring consumer good variations in households composed primarily of individuals aged 60 or older – showed a variation of 0.89% in the first quarter of 2018. The CPI-3i was up 3.30% year-over-year. With this result, the indicator varied above the Consumer Price Index (CPI-BR), which was 2.76% for the same period.
Between the fourth quarter of 2017 and the first quarter of 2018, the CPI-3i dropped 0.29 percentage point – down from 1.18% to 0.89%. Five of the eight expense categories that comprise the index recorded decreases in their variations. The Housing group was the main driver behind such trend, dropping from 1.21% to 0.07%. Within this expense category, the item driving this trend was household power bill, which recorded a -2.05% variation in the first quarter, compared to 4.14% in the previous quarter.
The following categories also contributed to the lower CPI-3i: Transport (2.51% to 1.61%), Education, Reading, and Recreation (1.11% to 0.73%), Communication (0.20% to -0.13%), and Miscellaneous Expenses (0.65% to 0.62%). It is worth mentioning the behavior of the following items for those expense classes: taxi fare (9.68% to -6.79%), tours (5.55% to -1.65%), monthly cable TV fee (4.08% to -0.42%), and cigarettes (1.23% to -0.24%), respectively.
On the other hand, the Food (0.45% to 1.41%), Health and Personal Care (1.47% to 1.59%), and Clothing (-0.07% to -0.02%) groups showed positive variation rates. The main drivers behind this trend were vegetables (7.60% to 16.55%), hygiene and personal care items (-0.39% to 0.01%), and footwear (-0.83% to 0.76%), respectively.
The IPC-3i for the second quarter of 2018 will be released on July 11.