In spite of the rise of school fees, consumer items such as food products and apparel led to the decrease of the rate from January to February

The Extended National Consumer Price Index (IPCA) of February changed by 0.41% and was below the January rate (0.59%). In the first two months of the year, the accumulated index accumulated 1.02%, less than in the first two months of 2005, when it was 1.17%. In the last twelve months, the accumulated index was 5.51%, also below the rate of 5.70% registered in the previous twelve months. In February 2005, the IPCA changed by 0.59%. 

Although the rises of school fees represented the main individual contribution in the month (0.21 percentage points), reaching 5.38% of increase due to the review of costs which usually occurs in the beginning of the school year, the IPCA decreased from January to February.

The decrease from January to February occurred, mainly, because the groups apparel (-0.54%), household articles (-0.39%) and food products and beverages (-0.28%) had negative price changes. The group apparel was affected by the period of sales which is common this time of year. Men’s apparel became 1.11% cheaper, whereas women’ s and children’s apparel fell by 0.88% and 0.23%, respectively. Household articles were also affected by items on sale, especially television sets, computer and sound equipment, which became 1.32% cheaper.

 In the group food products, several items underwent price reduction from one month to the other. Some products even went from positive changes in January to negative results in February. Among the falling products can be mentioned: carrots (from 15.82% to –16.51%), tomatoes (from 26.98% to –13.87%), potatoes (from 17.48% to –10.26%), jerky (from –4.48% to -7.40%), black beans (from 2.74% to –6.48%), chicken (from - 3.60% to - 5.51%), garlic (from -3.59% to - 4.43%), eggs (from 1.04% to –3.31%), meats (from –2.77% to –2.89%).

Still in the group food products, the main items with positive changes in February were: refined sugar (from 6.10% to 12.59%), crystallized sugar (from 12.80% to 11.58%), "carioca" beans (from 4.38% to 6.61%), green vegetables (from 6.04% to 3.60%), beer (from 1.90% to 1.95%), fruits (from 8.07% to 1.80%), ground coffee (from –0.02% to 1.21%) and French bread (from –1.20% to 0.54%).

In terms of rises, the highlights are urban bus fares, which, despite having risen less than in January (1.82%), became 1.25% more expensive in February due to the following readjustments: in Porto Alegre (increase of 5.71% on February 01, a contribution of 5.14% to the monthly index), in Rio de Janeiro (increase of 5.56% since January 19, a contribution of 3.83%), in Brasília (20% since January 01, a contribution of 1.69%), and in Belo Horizonte (12.12% since December 31, a small contribution of 0.54% to the monthly index).

Similarly to buses, fuels continued rising, although more slowly than the former. The liter of alcohol, which changed from 9.87% in January to 2.88% in February, had an accumulated change of 13.03% in the first two months of the year. Gasoline, which rose 0.57% in February after hike of 1.19% in January, accumulated 1.77% in the year.

Other items which are worth mentioning are: health insurance plans (1.07%), car repair (1.68%), car insurance (1.82%), hair stylists (1.10%) and piped gas (3.56%).

This way, whereas food products fell by 0.28%, non-food products changed by 0.60%.

Among the areas surveyed, the highest index was observed in the metropolitan area of Rio de Janeiro (0.74%). In this area, the readjustment of urban bus fares (5.56%) contributed 3.83% to the monthly index. The lowest index was that of Goiânia (0.06%).

In order to calculate the February index, prices collected between January 28 and February 24 (reference) were compared to those in effect between December 29, 2005 and January 27, 2006 (base).

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.

INPC was 0.23% in February

The National Consumer Price Index (INPC) was 0.23% in February, a result inferior to that of January (0.38%). In the first two months of the year, the accumulated index was 0.61%, a figure below the result for the same period in 2005 (1.01%). The index accumulated in the last twelve months was 4.63%, also below the rate of 4.85% relative to the twelve immediately previous months. In February 2005, the index was 0.44%.

In February, food products underwent negative change of 0.20%, whereas non-food products rose by 0.40%.

Among the areas surveyed, the highest index was registered in Rio de Janeiro (0.67%), whereas the lowest ones were those of Goiânia (-0.14%) and Curitiba (-0.05%).

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 January 28 and February 24 (reference) were compared to those in effect between December 30, 2005 and January 27, 2006 (base).