The Extended National Consumer Price Index (IPCA) of February changed 0.33% in and stood 0.05 percentage points (p.p.) below the 0.38% rate registered in January.  This was the lowest IPCA for the months of February since 2000, when it reached 0.13%. Considering the first two months of the year, the index was 0.71%, well below the 2.18% result relative to the same period of 2016. Considering the last 12 months, the index decreased to 4.76%, while it recorded 5.35% in the previous 12-month period. In February 2016, the rate was 0.90%. The complete data of the IPCA can be accessed here.

In February, the group education, with a high of 5.04% and impact of 0.23 p.p., prevailed in the IPCA of the month, being responsible for 70% of it. Conversely, the group Food and Beverages registered decrease of 0.45% and played a strong part in holding back the index, considering that its impact was of -0.11 p.p.

The high of 5.04% recorded by Education reflects the price adjustments usually applicable in the beginning of the school year, mainly the rise of the tuition fees of regular courses, which rose 6.99%, generating the highest individual impact on this month's index (0.21 p.p.). In regional terms, regular courses had increases between 4.94% (São Paulo) and 10.13% (Salvador). The exception was Fortaleza, where no increase was applicable due to a different price rise period. The results of the group Education by region surveyed were as follows:

On the other hand, the group food and beverages, with a change of -0.45%, was crucial to the decrease of the IPCA rate from January to February. This was the lowest result since July 2010, when food prices decreased 0.76%. Considering just the months of February, this is the most significant change since the implementation of the Plano Real (1994).

Concerning food at home, all the regions surveyed had decreasing prices, from -0.39% in São Paulo up to -1.57% in Campo Grande.

Several important products for the Brazilian intake got cheaper in February, such as carioca beans(-14.22%) and whole chicken (-3.83%). The main decreases are listed below.

Regarding food products which were on the rise, the highlights were:

The main pressure down came from airfares, whose 12.29% drop generated -0.05 p.p. of impact and almost offset the 0.06 p.p. of urban buses, with fares 2.33% more expensive.

Of the 13 places surveyed, urban bus, in February, became more expensive in eight of them, especiallyCuritiba (15.30%), as shown in the following table.

The increase in Brasília of 25% was in force from January 02 to 18; then, it was abrogated by a decision of the Legislative Chamber of the Federal District. From January 28 on, the increase of 25.00% was again in effect.

In Curitiba (15.30%), from February 6 on, there was a price rise of 14.86% from Monday to Saturday, whereas on Sundays the discount was canceled. This resulted in a 70.00% price rise in those days. InFortaleza (7.99%) and in Vitória (0.97%), fares continued cheaper on Sundays, but were increased at 20.93% and 16.67%, respectively.

It is also worth highlighting the applicable changes on intercity bus fares in five regions, as shown below.

Of note is that in the Metropolitan Area of São Paulo the 6.65% rise applicable to intercity buses by the Metropolitan Company of Urban Transportation (EMTU) was in force from January 08 to 11; then, it was suspended from January 12 until February 11, being in force again on February 12.

As a result, the group Transportation had a change of 0.24%. In this group, other highlights are vehicle insurance (2.59%) and fuels (-0.25%). The liter of gasoline got 0.21% cheaper, and only Salvador, with 8.79%, and Campo Grande, with 0.74%, did not record price decrease. Ethanol recorded an average change of -0.72%, but in Salvador there was a significant high of 9.50%.

As to the other groups, they ranged between -0.13% relative to apparel and 0.66% to communication.

Concerning regional indexes, the highest was found in the Metropolitan Area of Rio de Janeiro (0.68%), where the item regular courses presented a high of 9.65%. The lowest index came from Goiânia(-0.39%), a reflex of the 4.24% decrease of fuels.

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from January 31 to February 24 of 2017 (reference) were compared with those in force fromDecember 30, 2016 to January 30, 2017 (base).

INPC changes 0.24% in February

The National Consumer Price Index - INPC posted a change of 0.24% in February and was below January's rate (0.42%) by 0.18 p.p. In the cumulative index of the last 12 months of the year, the index decreased to 4.69%, staying below the 5.44% result recorded in the previous 12 month-period. In February 2016, the INPC recorded 0.95%.

Food products had decrease of 0.53% in February, whereas in the previous month there was increase of 0.35%. The group of non-food products had a change of 0.59%, well above the rate of 0.45 of January.

As to the indexes by area, the highest one was in Metropolitan Area of Curitiba (0.66%), where urban bushad an increase of 15.30% as a result of the 14.86% rise in force from Monday to Saturday and of 70.00% increase on Sundays, since the discount was canceled for Sundays. The lowest index came from Goiânia(-0.44%), a reflex of the 5.01% decrease of electricity. See below the table of monthly results by area surveyed.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from January 31 to February 24 of 2017 (reference) were compared with those in force from December 30, 2016 to January 30, 2017 (base).