Inflation advances 0.86% in February, greatest high for the month since 2016

Section: Economic Statistics | Umberlândia Cabral

March 11, 2021 09h00 AM | Last Updated: March 11, 2021 08h29 PM

The 7.11% price rise in gasoline was the greatest impact on February's IPCA - Photo: Licia Rubinstein/IBGE News Agency

Driven by fuel rise, February’s inflation was 0.86%, above that of January (0.25%). It is the highest result for February since 2016, when the index hit 0.90%. The data are from the Extended National Consumer Price Index (IPCA), released today (March 11) by the IBGE.

In the year, the index accrues high of 1.11% and, in 12 months, of 5.20%, above the 4.56% of the 12 previous months. In February 2020, the change was of 0.25%.

Rising 7.11%, gasoline alone had the strongest impact on the monthly index, contributing nearly with 42% to the final (0.36 pp). “The price rise in gasoline, originated in the refineries, ends up being partially passsed on to the final consumer. In the beginning of February, for instance, we had a 8% rise, and then another 10% rise. Those rises in a row in fuels explain the high”, says survey manager Pedro Kislanov.

Besides gasoline, ethanol prices (8.06%), diesel fuel (5.40%) and VG (0.69%) also increased. Thus, fuels accrued a high of 28,44%in the last nine months. In February, tranpsortation had a rise of 2.28%.

Education (2.48%) had the greatest change between groups. The biggest impact of the group came from regular courses (3.08%). “This was the second biggest impact within the month's index. In February, we process the increase of the tuition fees charged by educational institutions. And in addition, in some cases, the discounts given over the past year due to the suspension of face-to-face classes because of the pandemic were taken out ”, explains the researcher.

Food and beverages changed by 0.27% in February, decelerating for the third consecutive month. The fall in the prices of potatoes (-14.70%), tomatoes (-8.55%), long life milk (-3.30%), soybean oil (-3.15%) and of rice (-1.52%) contributed to the slowdown in food at home (0.28%). There was increase in the price of s (15.59%) and beef (1.72%).

“This deceleration from January to February is mainly due to some items that had risen significantly over the past year, such as soybean oil and rice. On the other hand, beef had a slight deflation in January, with a fall of 0.08%, and now it has increased again”, says Mr. Kislanov.

There was a slowdown in eating out, which went from 0.91% in January to 0.27% in February, mainly due to the change in snacks (0.11%), which in the previous month had increased 1.83%.

The rise in prices reached all 16 regions surveyed by the IPCA. The greatest result was the Metropolitan Area of ​​Fortaleza (1.48%), impacted mainly by the 8.86% increase in regular courses. The lowest was registered in Rio de Janeiro (0.38%), influenced by the fall in the airfare prices (-10.73%) and transportation by application (-16.5%).

INPC changes 0.82% in February

The National Consumer Price Index - INPC of February, on the other hand, increased by 0.82%, above the rate of January, when it had registered 0.27%. This is the highest result for a February since 2016, when the index was 0.95%.

Food products rose 0.17% in February while, in the previous month, they had registered 1.01%. Non-food products increased 1.03%, after changing 0.03% in January. All areas surveyed had inflation in February, with a highlight to Fortaleza (1.52%).

In the year, INPC accumulated an increase of 1.09% and, in the last 12 months, of 6.22%, above the 5.53% registered in the 12 previous months. In February 2020, the rate was 0.17%.

The INPC calculation covers households with monetary income of one to five minimum wages, with a salaried head, it covers ten Metropolitan Areas of the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. The IPCA covers households earning from one to 40 minimum wages, whatever the source.