The CPI closes 2021 at 6.5%, two tenths lower than expected, but remains at a 29-year high

The Consumer Price Index (CPI) rose 1.2% in December in relation to the previous month and raised its interannual rate to 6.5%, one point above the rate for November and its highest level in 29 years, due to the increase in the cost of electricity, food and hotels and restaurants, according to the final data published this Friday by the National Institute of Statistics (INE).

A study with two million electricity bills concludes that the 2021 household bill was "Similary" as of 2018

A study with two million electricity bills concludes that the 2021 household bill was "similar" to that of 2018

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The interannual rate of the CPI registered in December (6.5%) is two tenths lower than that advanced at the end of last month by the INE (6.7%). In the case of the monthly rate (1.2%), the final figure is one tenth lower than that reported by Statistics (1.3%).

With the year-on-year data for December, the highest since May 1992, the CPI has posted its twelfth consecutive positive rate and places average inflation for 2021 at around 3%.

According to Statistics, in the interannual behavior of the CPI, the rise in electricity prices stands out, higher in December of this year than in the same month of 2020, and of food, especially legumes and vegetables, bread and cereals and of the meat

In addition, accommodation services became more expensive in December compared to the same month in 2020 and restaurants raised prices above what they did a year earlier.

By contrast, the prices of fuels and lubricants for personal vehicles fell in December this year, in contrast to the rise they experienced in 2020.

Without taking into account the reduction of the special tax on electricity and the variations on other taxes, the interannual CPI reached 7.3% in December, eight tenths more than the general rate of 6.5%. This is reflected in the CPI at constant taxes that the INE also publishes within the framework of this statistic.

Core inflation (excluding unprocessed food and energy products) increased four tenths in December, to 2.1%, which is almost 4.5 points below the rate of the general CPI. It is the highest rate of the underlying since March 2013.

In monthly rate, the IPC chained its fifth consecutive upturn by rising 1.2% in December, almost one point above the rise registered in the month of November.

In the last month of 2021, the Harmonized Consumer Price Index (IPCA) placed its interannual rate at 6.6%, more than one point above the previous month. For its part, the advance indicator of the IPCA rose by 1.1% in monthly rate.


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