Inflation for senior citizens increases in fourth quarter of 2019

The main driver was the Food group, whose rate went from -1.76% to 3.11%. The item with the biggest influence on this spending group was Beef, which went up 26.03% in price in the fourth quarter, compared to 1.89% in the previous quarter.
Economics
14 January 2020
Inflation for senior citizens increases in fourth quarter of 2019

The Third Age Consumer Price Index (IPC-3i), calculated by the FGV´s Brazilian Institute of Economics (FGV IBRE), which measures variations in the prices of the main goods consumed by households mostly composed of people over the age of 60, went up 1.19% in the fourth quarter of 2019. In 12 months, IPC-3i rose 4.18%. As a result, the indicator expanded more than IPC-BR, which went up 4.11% in the same period.

Between the third and fourth quarters of 2019, IPC-3i increased 0.71 of a percentage point, from 0.48% to 1.19%. Five of the index’s eight component spending groups recorded increases in their rates of variation. The main driver was the Food group, whose rate went from -1.76% to 3.11%. The item with the biggest influence on this spending group was Beef, which went up 26.03% in price in the fourth quarter, compared to 1.89% in the previous quarter.

The following groups also contributed to the increase in IPC-3i: Transportation (-0.37% to 2.47%), Miscellaneous Expenses (0.34% to 6.73%), Education, Literature and Recreation (-0.34% to 1.29%) and Clothing (-0.59% to 0.80%). Within these spending groups, the following items experienced notable results: Gasoline (-2.58% to 5.69%), Lottery Tickets (0.00% to 39.04%), Airline Tickets (-10.75% to 11.93%) and Clothes (-0.74% to 1.07%).

On the other hand, the following groups saw decreases in their rates of variation: Housing (2.14% to -0.66%), Communication (1.07% to 0.11%) and Health and Personal Care (1.01% to 0.89%). In these spending groups, the following items had noteworthy results: Residential Electricity Charges (9.49% to -6.05%), Residential Phone Charges (1.73% to 0.05%) and General Medications (0.33% to -0.42%).

The complete study is available here.