Electricity bills soar, pushing February inflation to its highest level since 2003

The end of the Itaipu Bonus caused energy tariffs to rise in the country, raising the IPCA for the month to the highest level in 22 years
Electricity bill rises 16,8%, pushing February inflation to its highest level since 2003
Photo: Freepik

Brazil's official inflation rose 1,31% in February, after rising 0,16% in January, data published by IBGE (Brazilian Institute of Geography and Statistics) showed on Wednesday (12).

This is the highest level of HI (Broad National Consumer Price Index) for the month since 2003, when the indicator reached 1,62%.

The main culprit behind the surge in prices in February was residential electricity, which rose 16,8% compared to January.

The adjustment occurred due to the end of the Itaipu Bonus concession, which had temporarily reduced tariffs in the previous month.

As a result, the Housing group, of which electricity is a part, accelerated from -3,08% in January to 4,44% in February, being the sector that most impacted the IPCA in the month.

ANEEL approves R$1,3 billion bonus from Itaipu to ease electricity bills

In the year to date, inflation has risen by 1,47%, while in the last 12 months it reached 5,06% – the highest level since September 2023 (5,19%).

The indicator is above the Central Bank's target ceiling, which is 3% per year, and is considered within the tolerance margin if it is between 1,50% and 4,50%.

How is the IPCA calculated?

The IPCA has been calculated by the IBGE since 1980 and reflects the variation in prices for families with incomes between 1 and 40 minimum wages. The index covers ten metropolitan regions of the country, in addition to the cities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

To calculate the month, prices collected between January 30, 2025 and February 26, 2025 (reference) were compared with prices in effect from December 28, 2024 to January 29, 2025 (base).

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

An answer

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