Inflation in Curitiba approaches 14%; see ranking of capitals

THE The country’s official inflation index surpasses 11%, in the 12-month period, in 9 of the 16 capitals and metropolitan regions surveyed by the IBGE (Brazilian Institute of Geography and Statistics).

Curitiba (PR) is the metropolis with the highest rise in the IPCA (Broad National Consumer Price Index). In 12 months until November, the indicator rose 13.71% in the metropolitan region of the capital of Paraná.

The data was released this Friday (10) by the IBGE. Until October, the variation in Curitiba had been 13.48%.

The second biggest increase accumulated until November was verified in Grande Vitória (ES). The advance in prices reached 12.26%.

Porto Alegre (RS) appears in the sequence. In 12 months until November, the metropolitan region of the state capital had an IPCA of 12.10%.​

The other cities with inflation above 11% are Campo Grande (12.07%), Rio Branco (11.64%), Fortaleza (11.63%), São Luís (11.26%), Recife (11.02 %) and Goiânia (11.01%).

These nine locations recorded IPCA above the national average. According to the IBGE, inflation accumulated until November reached 10.74% in Brazil. This is the biggest advance in 12 months since November 2003 (11.02%).

The rise in inflation worries analysts because it does not end in 2021.

Economist André Braz, from the FGV Ibre (Brazilian Institute of Economics of the Getulio Vargas Foundation), says that the increase accumulated throughout this year will also have impacts in 2022. Different types of contracts and services are readjusted according to inflation.

“There is a very large indexation in the economy. This year’s inflation is transferred to the next in contracts and salaries,” he says.

“The fuels, which come rising a lot, generate an expectation of increase in public passenger transport in 2022, for example. This can add more fuel to the fire. The advance of these prices will depend on how much the city halls are going to be able to appease, through subsidies”, he completes.

The financial market projects an IPCA of 10.18% in the 12-month period until December 2021, according to the median of the Focus bulletin, released by the BC (Central Bank).

The number is far from the ceiling of the inflation target pursued by the monetary authority. The ceiling this year is 5.25%.

For 2022, the market forecast is for a 5.02% increase in the IPCA in 12 months. The estimate is also above the target ceiling, set at 5% next year.

“We expect convergence only in 2023. There are some persistent shocks in inflation, and there is a dampened demand. Some readjustments have not yet come due to the pandemic, as in the area of ​​education”, analyzes Mirella Hirakawa, senior economist at the AZ Quest manager .

Seven of the capitals surveyed by the IBGE had accumulated IPCA until November at a level below the national level. Belém (PA) had the lowest mark in 12 months: 8.7%.

The second smallest change occurred in Rio de Janeiro (9.57%). In São Paulo (SP), the rate was 10.02%. It is the third lowest in the survey, although it is in double digits.

Inflation accumulated in 12 months

Until November, in %

Source: IBGE