Airfares soar 123% and lead inflation in 12 months

Airline ticket prices are sky high. In the 12-month period up to June, tickets accumulated prior inflation of 123.26% in Brazil.

It is the most intense increase among 367 sub-items that make up the IPCA-15 (National Index of Extended Consumer Prices 15).

Until June, the IPCA-15 accumulated an increase of 12.04% in general terms, according to data released this Friday (24) by the IBGE (Brazilian Institute of Geography and Statistics).

The surge in airfares comes in a context of greater demand for travel, after restrictions caused by the pandemic, and an increase in fuel used in aviation, which puts pressure on airline costs.

On a monthly basis, tickets rose 11.36% in June, after an even more intense variation in May (18.40%), according to the IPCA-15.

In the 12 months through June, the second biggest rise in prices is that of zucchini: 101%. The advance was 81.10% until May.

At the start of this year, fruits and vegetables rose in Brazil with the impact of adverse weather.

Drought records in the South and heavy rains in regions such as the Southeast and Northeast have shaken plantations, with an impact on supply and final prices.

Some affected foods begin to show signs of slowing down, but continue to show significant increases.

It’s the carrot. In accumulated terms, the advance went from 146.31% until May to 99.55% until June.

Despite the truce, the carrot is the sub-item with the third biggest price increase in the last 12 months.

Cucumber is in fourth place in the ranking. The high was 84.03% in the accumulated until June. The rise was 45.79% until May.

The potato comes in the sequence, with an increase of 65.93% until June. The variation was 64.74% up to the previous month.

Below, see the 15 sub-items that accumulated the greatest changes in 12 months, according to the IPCA-15.

Biggest rises in cumulative

Until June 2022, in %

IPCA-15 and IPCA

The official inflation index in Brazil is the IPCA (Broad Consumer Price Index), also calculated by the IBGE.

As the IPCA variation is calculated over the reference month, the data for June is not yet complete. It will be known on the 8th of July.

The IPCA-15, as it is released earlier, signals a price trend. The prior indicator is usually calculated between the second half of the previous month and the first half of the reference month of the disclosure.

In this case, prices were collected between May 14th and June 13th. This means that the new result still does not capture the reflexes of the readjustment of gasoline and diesel oil announced by Petrobras on June 17th.