Rises of fuel and bus fares were the main influences over the January index. The IPCA accumulated in the last twelve months was 5.70%, almost the same figure as in the previous twelve months (5,69%).

The Extended National Consumer Price Index – IPCA, calculated by IBGE in partnership with CAIXA, changed by 0.59% and was above the December figure (0.36%). This way, the index accumulated in the last twelve months reached 5.70%, almost the same rate as that of the previous twelve months. In January 2005, the index was 0.58%.

The high prices of sugar cane caused the year to begin with rises of fuel alcohol, the main impact on the index of January: 0.11 percentage points. In the average of the areas surveyed, the price of the liter of this fuel rose by 9.87% in comparison with the end of last year. However, consumers from Rio de Janeiro and Curitiba have been paying even higher prices, since in these two states there have been rises of 13.37% and 13.33%, respectively. The lowest rates were those registered in the metropolitan areas of Belém (4.98%) and Recife (5.38%). Fuel alcohol led to the average rise of 1.19% of the liter of gasoline, a fuel with which it is usually mixed. The liter of gasoline is now 3.44% more expensive in Salvador, 3.21% in Brasília and 3.15% in Rio de Janeiro. On the other hand, prices fell in Recife (-3.16%) and Porto Alegre (-0.66%).

Urban bus fares

, which plays a significant role in family expenses, was the second biggest impact (0.09 percentage points) on the index of the month, although the price change of this item (1.82%) has been inferior to that of alcohol. January concentrated significant changes in two areas. In Brasília, which accounted for 18% of the index this month, there was readjustment of 21.05% on the first day of this year. On the last day of 2005, there was readjustment of 12.5% in Belo Horizonte, causing change of 11.52%. In Rio de Janeiro, however, both the readjustment (5.56% since January 19) and the change (1.67%) were lower.

In case of health insurance plans, IPCA incorporated the difference between the readjustment which had been in effect before and the readjustment put into effect due to the permission given by Justice to old contracts (dated before 1999) of certain agencies in some areas. This way, the change of health insurance plans, which was usually around 1% monthly, was 1.89% this time. From February on, this index will reach the levels of the last few months again.

The IPCA was also influenced by prices of new cars, which, reflecting the transfer to consumer of rises imposed by car factories, became 1.38% more expensive.

It is also worth mentioning rises of the following items: car insurance (2.43%), condominium taxes (1.81%), recreation (1.19%0, domestic employees (1.16%) and car repair (1.05%).

However, opposite to these rises, electricity became 0.94% cheaper. One of the main contributions to this result was the end, on December 23, 2005, of the cost relative to the "blackout insurance", whose charge began in February 2002, in order to cover damages for lack of energy.

The rates which decreased in relation to December were those of food products (from 0.27% to 0.11% in January) and apparel (from 1.58% to 0.03%). Concerning food products, meats (from 0.41% to –2.77%) and chicken (from –1.34% to 3.60%) became cheaper.

Some food products had moderate rise rates, for example, rice (from 3.29% to 2.55% and black beans (from 7.24% to 2.74%). Others, such as sugar cane derivatives, showed changes from December to January; two examples are refined sugar (from 2.50% to 6.10% and crystallized sugar (from 2.85% to 12.80%).

Among the areas surveyed, the highest indexes came from the metropolitan areas of Belo Horizonte (1.48%) and from the municipality of Brasília (1.41%), due to the readjustments of urban bus fares. The lowest figure was registered in the metropolitan are of Recife (0.02%).

The IPCA has been calculated by IBGE since 1980. It refers to families with monetary income, from whatever source, ranging from 1 to 40 minimum salaries and encompasses nine metropolitan areas in the country, besides Brasília and the municipality of Goiânia. In order to calculate the monthly index, prices collected between December 29 and January 27 (reference) were compared to those in effect between November 30 and December 28 (base).

INPC was 0.38% in January

The National Consumer Price Index – INPC changed by 0.38% in January, practically the same figure as in December (0.40%). The INPC accumulated in the last twelve months was 4.85%, a rate inferior to that of the previous twelve months (5.05%). In January 205, the index was 0.57%.

Despite the deceleration of the rise rate of food products (from 0.35% in December to 0.07% in January), urban bus fares, whose rate rose from 0.42% to 1.79%, caused the index to remain at the same level from one month to the next.

The highest indexes were registered in Brasília (1.86%) and Belo Horizonte (1.72%). The lowest ones in Recife (-00.12%), São Paulo (0.07%) and Porto Alegre (-0.08%).

The INPC has been calculated by IBGE since 1979. It refers to families whose monetary income, from any source, ranges from 1 to 8 minimum salaries with a salaried worker as head of the household. The index encompasses nine metropolitan areas in the country, besides Brasília and the municipality of Goiânia.

In order to calculate the monthly index, prices collected between December 29 and January 27 (reference) were compared to those in effect between November 30 and December 28 (base).