The Extended Consumer Price Index 15 (IPCA-15) changed by 0.51% in January and was above the December figure, 0.38%. Alcohol was the major impact on the index of the month (0.10 percentage point), having changed from 1.09% in December to 9.22% in January, as a consequence of the transfer of price rises to fuel distributors. Consequently, this item affected gasoline, whose constant rate in December (0.04%) is 0.59% this month. Besides, the continuous rise of food products (with 0.40% in December and 0.41% in January) was an important contribution to the monthly rate.

Urban bus

fares also became more expensive (from 0.48% to 0.68%) and affected the January index. The readjustment of about 12.5% occurred on the 31^st of December in Belo Horizonte, contributing to changes in the index of this area (5.45%). The same happened in Brasília, where readjustment of 21.05% on the first of January in also affected the index (8.40%).

The IPCA-15 of January was also affected, in terms of health care plans, by the difference between the readjustment which had already been effected and the readjustment of old contracts (prior to 1999) authorized by the Brazilian Justice in some regions. This way, the monthly change of the item health care plans, which was usually 1%, became 1.8%. From February on, once this authorized readjustment has been absorbed, this item will once more get back to the level of the last few months. Expenses with domestic employees also rose (from 0.65% to 1.15%).

Concerning the item electricity (-0.52%), it is worth mentioning the elimination, on December 23, of the charge of the tax relative to emergency use of bills, which had been implemented in February 2002, with the objective of covering risks of problems for lack of energy.

In the group food products, there was deceleration of the price of meats (from 0.30% to –1.31%), chicken (from 0.58% to –2.82%) and other products, for example non-industrialized products, which changed from the significant seasonal hike in December to much lower results: tomatoes (from 37.44% to – 16.25%) and onions (from 15.10% to – 10.24%). Rice (from 0.63% to 3.51%) and black beans (from 4.08% to 9.22%), reflecting the period of little offer, presented rise. The price of potatoes, even with the fall over the month (from 36.01% to 33.23%), increased significantly.

Among the areas surveyed, the major result was that registered in Belo Horizonte (1.07%) mainly considering the change of prices of urban bus fares (5.45%). The lowest index was that of the metropolitan area of Recife (0.08%).

See below the indexes by area

The prices for the calculation of the index were collected from December 14, 2005 to January 13, 2006 and compared to those in effect from November 15 to December 13, 2005. IPCA –15 refers to families with monetary income, from whatever source, ranging from 1 to 40 minimum salaries and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador e Curitiba, besides Brasília and Goiânia. The same methodology is used to calculate both IPCA and IPCA-15. The difference between the two indexes lies in the period of data collection. The other index, IPCA-E consists of IPCA-15 accumulated by quarter.