Fuel for frolic: Ethanol records its sharpest drop and Carnaval inflation reaches 2.91%
Brazilian revelers have a little extra fuel in their tanks to enjoy this year’s Carnaval. According to a survey by FGV’s Brazilian Institute of Economics (IBRE), the most consumed products and services during Carnaval season rose 2.91% (CPI) between March 2018 and February 2019, on average – below the CPI-10 of 3.98% in the same period.
The highlight was Ethanol, which dropped 2.52%. On the other hand, Gasoline rose 1.24% – below the index’s variation in the period, which means that road trips will be a little bit cheaper this year. But those who own Natural Gas Vehicles (NGV) will have to dig deeper into their pockets, since this particular item had the highest variation among all 23 items surveyed: 16.52%.
“Except for NGV, which recorded the highest upsurge in prices, overall results are very positive for those who will hit the road during the holiday. Besides the cheaper ethanol and the increase in gas prices below the inflation rate, vehicle expenses, such as Lubricants (1.75%), Tolls (3.04%) and Vehicle repair services (3.74%) also rose below the inflation rate recorded by the CPI-10 (3.98%)”, said Igor Lino, IBRE researcher.
But there’s even more good news for revelers this year: The prices of Meals in bars and restaurants (2.82%), Coffee (2.66%), Distilled spirits (2.19%), Beer (0.93%), and Hotel Accommodations (0.53%) all rose under the average inflation for the Carnaval season, calculated by FGV’s IBRE. In other words, beverages will be much cheaper this season.
“Beverages definitely helped in holding the index down: they account for 15% of Carnaval expenses, while meals and snacks away from home represent 51% of expenses. These two items were the main drivers steering the index’s behavior”, said Lino.
Other negative highlights were Excursions and Tours (11.28%), which recorded the highest increase in the period. Condoms and Lubricants (4.99%), Sweet and Savory Snacks (4.77%), Breakfast (4.59%) and Sandwiches (4.29%) also rose above the inflation rate among the most consumed products during the Carnaval holiday.
The expert’s tip for this year’s revelers is: “bring your own snacks when possible. Besides avoiding long lines and crowded establishments after the festival, you will get to enjoy the holiday without blowing your budget.”