The index was slightly lower than in December (0.48%) and in January 2006 (0.59%). The figure accumulated in the last twelve months, in January (2.99%), was below the index in December 2006 (3.14%).

The Extended National Consumer Price Index (IPCA) changed by 0.44% in January and was 0.04 percentage points below the December index (0.48%. In the last twelve months the index was 2.29%, a result which was lower than that of the immediately previous twelve months (3.14%). In January 2006, the index was 0.59%.

The fares of urban buses accounted for the biggest individual contribution to the index of the month (0.06 percentage points), even with deceleration of the increase rate of fares, which decreased from 4.61% in December, to 1.66% in January. There were changes in the metropolitan area of Belo Horizonte (7.57%), where there has been readjustment of 8.00% since December 30^th; of Salvador (5.29%), with 17.65% since January 20^th, even before the readjustment was made official on January 22^nd; of Rio de Janeiro (1.01%), with 5.26%, in effect since December 04; of São Paulo (0.44%), whose readjustment, in effect since November 30^th, was 15.00%.

Apparel, as a consequence of the low prices which are common in the beginning of the year, fell by 0.19%. It happened after hike of 1.00% in December. Women’s apparel became 0.93% cheaper. However, despite the fall of apparel, and the reduced participation of buses, the rain period of March led to the acceleration of the rise of food products prices, which changed from 0.39% to 0.84%. Tomatoes became 27.42% more expensive, whereas green vegetables rose by 10.33%.

Alcohol, 7.23% more expensive due to the period between harvests of sugarcane, also affected the January result. The biggest hike occurred in the metropolitan area of São Paulo, where the liter of this fuel costs now 13.75%, that is, more than in December. Gasoline, with fall of 0.57%, became cheaper. In Goiânia, especially, its price fell by 6.26%.

Besides food products and fuel alcohol, other items such as intercity buses (2.24%), condominium fares (1.78%), used cars (1.34%), recreation (0.96%) and domestic workers (0.86%) affected IPCA in the month.

In terms of indexes by area, the highest result was obtained in the metropolitan area of Belo Horizonte (0.75%), where the item urban buses changed by 7.57%,  considering the readjustment of 8.00% which occurred on December 30^th, when the standard fare changed to R$ 1,85 to R$ 2,00. The lowest index was that of the area of Porto Alegre (-0.07%), where there was slight deflation.

The IPCA has been calculated by IBGE since 1980 and it refers to families with monetary income, from any source, ranging from 1 to 40 minimum salaries.  It includes nine metropolitan areas of the country, besides the municipalities of Goiânia and Brasília. For the calculation of the index of the month, prices collected from December 29th to January 29th  (reference) were compared to those charged from November 29th to December 28th (base).

INPC changed by 0.49% in January

The National Consumer Price Index – INPC changed by 0.49% in January, less than in December (0.62%). In the last twelve months the arte was 2.93%, slightly over the rate of 2.81% relative to the immediately previous twelve months. In January 2006 the index was 0.38%.

In the INPC of the month, food products changed by 0.80%, whereas non-food products rose by 0.37%. The highest index by area was registered in Belo Horizonte (1.14%), and the lowest one, in Porto Alegre (-0.24%).

The INPC has been calculated by IBGE since 1979; it refers to families with monetary income from 01 to 06 minimum salaries, headed by a salaried worker, and includes nine metropolitan areas of the country, besides the municipalities of Goiânia and Brasília.  To calculate the index of the month, prices collected in the period December 29th to January 29th  (reference) were compared to prices charged in the period from November 29th  to December 28th (base).