The Extended National Consumer Price Index (IPCA) changed 0.07% in March, the lowest result for a month of March since the beginning of the Plano Real (1994), and was 0.18 percentage points (pp) below the rate of  February (0.25%). In March 2019, the rate had been 0.75%. The index accumulates a 0.53% increase in the year and, in the last 12 months, 3.30%. Of the nine groups of products and services surveyed, three went through deflation in March.

For the calculation of the month's index, the prices collected in the period from 3 to 30 March 2020 (reference) were compared with the prices in force from January 29 to March 2, 2020 (base). Due to the COVID-19 pandemic, on March 18, the IBGE suspended face-to-face price collection. From that date on, prices were be collected by other means, such as surveys on internet sites, by phone or e-mail.

The Food and Beverage group had the greatest change, 1.13%, and the greatest impact, 0.22 percentage points (p.p.), in March, showing acceleration in relation to the February result (0.11%). Another five groups also registered increase, with a highlight to Education (0.59%), which had the second largest positive change, and Housing (0.13%), which had decreased in February (-0.39%). Among the decreases, although the smallest change occurred in Househhold articles (-1.08%), the major negative contribution in the month's index (-0.18 p.p.) came from Transportation (-0.90%). The other groups were between the 0.23% drop in Personal expenses and the 0.21% increase in Wearing apparel and Health and personal care.

The acceleration of the Food and beverage group (1.13%) was mainly influenced by the behavior of food at home, which went from 0.06% in February to 1.40% in March. The highlights were chicken eggs (4.67%), potatoes (8.16%), tomatoes (15.74%), onions (20.31%) and carrots (20.39% ). Meat (-0.30%), in turn, decreased for the third consecutive month, although the decrease in prices was less intense compared to the previous month (-3.53%).

Food away from home also accelerated from February (0.22%) to March (0.51%), driven by the increase in snacks (1.90%). Meals, on the other hand, registered deflation (-0.10%), after the 0.35% rise in the February IPCA.

In the Education group (0.59%), the greatest impact (0.04 pp) came again from regular courses (0.74%), reflecting the price increases normally adopted at the beginning of the school year and incorporated in the index in the months of February and March. Other courses, in turn, registered a decrease (-0.27%), after the increase of 2.67% observed in the previous month.

After the fall of 0.39% in February, the Housing group increased by 0.13% in March, influenced by increases in bottled gas (0.60%) and electricity (0.12%). With regard to electricity, it is worth remembering that, in March, the green tariff flag was maintained, i. e., there was no additional charge on the electricity bill.

The areas showed changes that ranged from the 6.67% drop in Goiânia, where there was a reduction in PIS/COFINS and in the contribution of public lighting, to the 4.21% increase in Rio de Janeiro, where tariff adjustments were made by two concessionaires as of March 15. In the case of bottled gas, Petrobrás announced a 5.00% reduction in the price of 13 kg bottled gas at refineries, as of March 19.

Also in Housing, the result of the piped gas item (-0.42%) is a consequence of the falls observed in São Paulo (-0.79%), where there was a reduction of 0.85% on March 2, and in Rio de Janeiro (-0.11%), where tariffs were reduced by 1.20% on February 1st. In Curitiba (0.75%), there was a 5.26% increase, applied as of February 3. Finally, it is worth mentioning that the positive change in the water and sewage rate (0.12%) is due to the average adjustment of 6.23% in Porto Alegre (1.11%), in force since March 21.

The largest negative contribution (-0.18 pp) to the IPCA in March came from the Transportation group (-0.90%). In addition to the drop in airfare prices (-16.75%), all fuels (-1.88%) surveyed decreased: ethanol (-2.82%), diesel oil (-2.55%), gasoline (-1.75%) and vehicular gas (-0.78%). In the case of gasoline, throughout March, Petrobrás announced a series of reductions in the prices of this fuel at refineries, the last of which was 5.00% on March 28. With the exception of Salvador (2.14%), Campo Grande (0.52%) and São Luís (0.07%), all areas recorded a decrease in prices, which ranged from -3.45% in Vitória to -0.51% in Belém.

Among the highs of Transportation, the highlight was the item urban buses (0.32%), which was influenced by the ajustments of 5.00% in Salvador (3.50%), in effect since March 12, and 8.82% in São Luís (4.52%), applied on 16 February. The positive change in the train item (0.08%) is a consequence of the 2.17% adjustment in Rio de Janeiro tickets (0.21%), in effect since February 2.

With regard to regional indices, four of the sixteen areas surveyed underwent deflation in March, as shown in the table below. The lowest index was found in the municipality of Goiânia (-0.74%), due to the drop in electricity (-6.67%) and gasoline (-3.25%). The highest result was registered in the municipality of Campo Grande (0.56%), due to the increases in tomatoes (21.20%) and gasoline (0.52%).

The IPCA has been calculated by the IBGE since 1980, it refers to families with monetary income from 01 to 40 minimum wages, whatever the source, and covers ten metropolitan areas of the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

INPC changes 0.18% in March

The National Consumer Price Index - INPC for the month of March changed by 0.18%, while in February it had registered 0.17%. The cumulative change in the year was 0.54% and, in the last twelve months, the index increased by 3.31%, below the 3.92% registered in the preceding 12 months. In March 2019, the rate was 0.77%.

Food products increased by 1.12% in March, while in the previous month, they registered 0.13%. The group of non-food products changed by -0.09%, while in February it had registered 0.18%.

With regard to the indexes by area, as shown in the table below, the municipality of Campo Grande (0.62%) had the highest index, mainly due to increases in tomatoes (21.20%) and gasoline (0, 52%). The lowest result was the municipality of Goiânia (-0.67%), influenced by the fall in the prices of electricity (-6.74%) and gasoline (-3.25%).

For the calculation of the month's index, the prices collected in the period from 3 to 30 March 2020 (reference) were compared with those in force from January 29 to March 2, 2020 (base).

The INPC has been calculated by the IBGE since 1979, it refers to families with monetary income from 01 to 05 minimum wages, having a salaried head, and covers ten metropolitan areas of the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís , Aracaju and Brasília.