The Extended National Consumer Price Index - IPCA of February was 0.43%, whereas in January the rate had been 0.32%. The cumulative rate of the year went to 0.75%, above the 0.61% registered in the period of 2018. In the last 12 months, the cumulative rate was 3,89%, higher than the 3.78% of the previous 12 months. In February 2018, the rate was 0.32%.
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Six of the nine groups of products and services surveyed went up from January to February. The highlight was Education (3.53%), which exerted the second highest positive impact in the IPCA of February, with 0.17 percentage points (pp), just behind Food and Beverages (0.78% and 0.19 pp). The other increases were: Health and Personal Care (0.49% and 0.06 pp), Housing (0.38% and 0.06 pp), Household Articles (0.20% and 0.01 pp ) and Personal Expenses (0.18% and 0.02 pp). On the other hand, two groups had deflation: Transportation (-0.34% and -0.06 p.p.) and Wearing Apparel (-0.33% and -0.02 p.p.). The Communication group was stable in the period (0.00% and 0.00 pp).

Responsible for the biggest change among the groups of products and services surveyed, the Education group (3.53%) reflects the increases applied at the beginning of the school year, especially in the monthly fees of the regular courses, whose values increased, on average, 4.58 %, generating the highest individual impact on the index of the month (0.15 pp). By areas, regular courses increased between 2.60% in Brasilia and 7.17% in Aracaju.

Food and beverages, with the greatest impact on the IPCA of February (0.19 p.p.), showed a deceleration, from 0.90% in January to 0.78% in February. Food at home rose by 1.24%, driven mainly by the increase observed in the prices of carioca beans (51.58%), potatoes (25.21%), green vegetables (12.13% ) and long-life milk (2.41%). The decrease in meat (-1.23%), rice (-1.23%), whole chicken (-1.69%) and tomatoes (-5.95%) stood out. Food away dropped 0.04%, mainly influenced by the item meals (-0.22%).

Electricity, with a high of 1.14%, was the main impact (0.04 pp) in the Housing group (0.38%) on the index for the month, due to the increases in the PIS/COFINS tax rates in most of the areas. The changes were between the 2.35% of Aracaju and the 14.99% of Rio Branco, whose increase relates to the average rise of 21.29% in tariffs, in force since December 13, 2018, legally suspended on January 3, coming again into force on January 29. It is also worth noticing that the green flag tariff has remained since December 2018, with no additional charge per kilowatt hour consumed.

Also in Housing, the 4.11% change in piped gas occurred due to the average increase of 11% in the tariff in São Paulo (10.64%), in force since February 1st. Of note is the 1.04% rise granted by Petrobras, in the refineries, in the price of bottled gas (-0.72%), as of February 5.

In Health and personal care (0.49%) the highlights are health plans (0.79%) and personal hygiene (0.74%). Regarding drops, Wearing apparel (-0.33%) was influenced mainly by footwear (-0.54%) and women's clothing (-0.56%).

In Transportation, the deflation of 0.34% was driven by the falls registered in the airfares (-16.65%) – greater negative individual impact in the month (-0.08 pp) - and gasoline (-1.26%) . With the exception of Goiânia, which registered a 3.21% increase in gasoline, the other areas presented falls that changed between -4.26% in the metropolitan area of Porto Alegre and -0.37% in the metropolitan areas of Recife and Salvador.

Ethanol also fell in prices from January to February (-0.81%), while diesel oil (0.36%) and vehicular gas (7.75%) registered increases. The latter was influenced by the 40.11% increase  in São Paulo (21.12%) in force since February 1st.

The largest positive contribution in the Transportation group (-0.34%) was the item urban bus (1.50% and 0.04 pp), due to tariff increases in five of the sixteen areas surveyed during the reference period the survey.

Also in Transportation, the highlight was intercity buses (0.27%), which incorporated the average increase of 6.00% in tariffs in São Paulo (2.62%) as of January 20 and the average reduction of 3.00% in tariffs in Rio de Janeiro (-2.31%) since February 11. Also noteworthy was the 3.85% increase in train fares due to the 9.52% increase in tariffs in Rio de Janeiro (8.57%) in force since February 2 and in São Paulo (3.37%), whose rise was 7.50% as of January 13. In effect in the same period, the item subway (2.53%) had the same increase in São Paulo (3.37%).

As for regional indices (table below), only Brasília (-0.18%) had deflation in February, due to the drop in airfares (-18.33%) and gasoline (-1.63%). The highest index stood with the municipality of Rio Branco (1.12%), mainly influenced by carioca beans (69.46%) and electricity (14.99%), due to the average increase of 21.29 % in tariffs, in force since December 13, 2018, legally suspended on January 3, and back in effect on January 29.

The IPCA is calculated by the IBGE since 1980, it refers to families with 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 0.54% in February

The National Consumer Price Index - INPC in February was 0.54%, 0.18 pp above the 0.36% rate recorded in January. The cumulative index of the year is at 0.90% and the index of the last twelve months is at 3.94%, against 3.57% in the previous 12 months. In February 2018, the rate was 0.18%.

Food products rose 0.94% in February, compared to 0.90% in the previous month. Non-food products increased by 0.37%, against 0.13% in January.

By areas, the lowest index was in the metropolitan area of Porto Alegre (0.05%) due to the drop in gasoline (-4.26%) and meat (-2.99%). The highest index was Rio Branco (1.17%), mainly influenced by carioca beans (69.46%) and electricity (15.16%), as a result of the 21.29% increase in effect since December 13, legally suspended on January 3, and back into force on January 29.

For the calculation of the monthly index, the prices collected in the period from January 30 to February 26, 2019 (reference) were compared with those in effect from December 29, 2018 to January 29, 2019 (base).

The INPC has been calculated by the IBGE since 1979. It refers to families with monetary income ranging between 01 and 05 minimum wages with a salaried householder. The INPC covers ten metropolitan areas of the country, as well as the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís , Aracaju and Brasília.