Tuition fees account for half (0.31 percentage points) of the index. Food was the main reason for the fall back of 0.15 percentage points in relation to January (0.76%).

The Extended National Consumer Price Index – IPCA of February had a change of 0.61% and was revised down 0.15 percentage points below January (0.76%). With such a result, IPCA stood at 1.37% in the year, lower than the 3.86% rate of the same period of 2003. The index of the last twelve months stood at 6.69%, lower than the index from the previous twelve months (7.71%). The IPCA of February 2003 was of 1.57%.

The group Food and Beverages had a change of 0.15%, much lower than January´s (0.88%), when excessive rain damaged the crops. After the effects of rain and a still intensified marketing of the new crop, most food products showed lower rates than those of the previous month. After a peak of 25.80% in January, tomatoes fell 3.71%; fruits went from 2.69% to - 0.89%; and rice, from 3.16% to 0.68%. Because of a good sugarcane harvest, prices for refined sugar, which had already fallen 7.58% in January, fell even more: 11.06%, the major negative impact (-0.03 percentage points) of the month.

Therefore, food products were responsible for IPCA´s drawback, in spite of the strong influence of school´s high tuition fees. Other important items had smaller growth or even a drop, such as alcohol fuel (-2.54%), cleaning products (-0.69%), interstate bus fees (-0.46%), medicines (-0.23%) and, wearing apparel (-0.23%).

Tuition fees rose 8.11% and made an impact of 0.31 percentage points - half of February´s IPCA. The biggest increase for this item was in Rio de Janeiro (10.50%) and the lowest, in Fortaleza (3.41%).

Landline telephone went up 0.91%, with a readjustment of 7% in calls placed from landline to mobile telephones. The IPCA of the month was also influenced by the rise of 2.03% in cigarettes. New automobiles went up 1.56%, and the used automobiles, 1.39%. The increase in the new automobiles was seen in the concessionaires because of the increase practiced by the automobile companies. Also high (2.61%) was the item car repair.

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 nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. To calculate the IPCA of February prices collected between January 29 and February 27 of 2004 (reference) were compared with those from December 30, 2003 to January 28, 2004 (base).

Indexes by area

The biggest index by area was registered in Curitiba (1.01%), where many important items were above the national average. The highlights are cooking gas (1.22%), new automobiles (2.34%), gasoline (2.97%), alcohol (2.51%), and medicine (0.86%). The lowest index came from Salvador (0.36%). 

INPC changed 0.39% in February

The National Consumer Price Index- INPC went from 0.83% in January to 0.39% in February, 0.44% lower. Food products went up 0.25%, while in January it was in 0.97%. Non-food products rose 0.45%, also an inferior result if compared to January (0.77%).

INPC accumulated 1.22% in the first two months of the year, lower than the 3.97% result of the same period of 2003. The index of the last twelve months stood at 7.47%, also lower than the previous twelve months, 8.62%. In February 2003, the INPC rate was of 1.46%. As shown on the chart below, the biggest index by area was registered in Brasília (1.03%) and the lowest in São Paulo (0.10%).

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to eight minimum wages, with a salaried head of the family, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. To calculate the INPC of February, prices collected between January 29 and February 27 (reference) were compared to those practiced from December 30, 2003 to January 28, 2004 (base).