The Extended National Consumer Price Index (IPCA) changed by 0.25% in March, recording a decrease of 0.08 percentage points versus the February figure (0.33%). The IPCA had not reached a lower figure in a month of March since 2012, when it was 0.21%.

This result led to a cumulative figure of 0.96% in the quarter, significantly below the 2.62% of the same period in 2016. That was the lowest result for a first quarter since the beginning of the Real Plan (a set of measures taken to stabilize the Brazilian economy), in 1994. The cumulative index in the last 12 months was even lower, 4.57%, in comparison with the 4.76% of the previous 12 months. The IPCA of March 2016 was 0.43%.

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With an impact of 0.15 percentage points (p.p.), electricity accounted for most of the March index, which rose 4.43% and led the group housing to reach 1.18%, the highest change in the group. The result for the item electricity reflects the charge of the yellow flag tariff, R$ 2.00 per each 100 kwh consumed, together with increases or decreases in the parcels of PIS/COFINS, depending on the area surveyed.

In Rio de Janeiro, on March 15, there was price adjustment of 9.81% in the tariffs of one of the concessionaires and decrease of 5.19% in another one. In Goiânia, there was also adjustmen of 35.03% in the parcel relative to Public Lighting Contribution – CIP. The lowest result registerd in the item electricity was 1.53% in the Metropolitan Area of Belém, whereas thr highest on, 6.74%, was that of Rio de Janeiro.

Besides electricity (4.43%), expenditure on housing (1.18%) was highter in comparison with the 1.13% increase in the price bottled gas, considering relexes of the average adjustment of 9.80% in refineries, granted by Petrobrás on March 21.

Education (0.95%), in spite of the second biggest change in the group, recorded significant decrease versus the increase of 5.04% observed in the previous month , since the IPCA of February was significantly affected by the anual adjustments usually effected on the prices of fees in effect the year before. By area, Fortaleza is a highlight in terms of results, with 5.34%.

The group food and beverages accelerated 0.34% in March, whereas, in February, it had recorded a decrease of 0.45%. Important items on the consumer table, such as long-life milk (2.60%), ground coffee (1.89%) andbread rolls (0.91%), got more expensive.

Food products such as black beans (-9.11%), pinto beans (-5.59%) and red beans (-4.50%) got cheaper from one month to the other.

Considering the decreases, it is observed that four of the nine groups of products and services recorded a decrease from February to March: transportation (-0.86%), communication (-0.63%), household articles(-0.29%) and apparel (-0.12%). The highlight, in this case, was gasoline, from the group transportation, the liter of which became, on the average, 2.21% cheaper. Except for Recife, where there was increase of 0.71%, prices fell in all the areas surveyed, and reached -4.01% in the metropolitan aea of Curitiba. As for the liter of ethanol , there was decrease of 5.10%, with rise of prices recorded in Recife as well. In the other areas, there was decrease between -6.46% in São Paulo and -0.78% in Campo Grande. Airfares wre another highlight for having presented decrease of 9.63%.

In communication (-0.63%), the result occurred due to the reduction of landline telefone fees, in effect since February 25, and influencing the item landline telephone to -2.24%.

Consideringhealth and personal care (0.69%) and personal expenses (0.52%), the highlights are, in the former, the items health insurance (1.07%) and personal hygiene (0.71%). In the latter, cigarette , whose change of 1.68% reflects price adjustments which took place in some brands and áreas since the 26th and 27th of February.

Regarding indexes by area, the highest was that of the metropolitan área of Fortaleza (0.66%), where the itemregular courses had a hike of 8.26%. The lowest indexes was that of the metropolitan area of Belo Horizonte(-0.04%), influenced by the 2.27% decrease of fules.

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from February 25 31 to March 29 2017 (reference) were compared with those in force from January 31 to February 24, 2017(base).

INPC changes 0.32% in March

The National Consumer Price Index (INPC) changed by 0.32% in March and was 0.08 percentage points above the February rate (0.24%). Considering the cumulative index in 12 months, the index fell to 4.57%, and was below the 4.69% relative to the 12 previous month. In March 2016, the INPC was 0.44%.

Food products increased by 0.32% in March, whereas, in the previous month, there had been decrease of 0.53%. The group of non-food products recorded a change of 0.32%, and was below tha rate of 0.59% of February.

As for the indexes by area, the highest one came from the metropolitan area of Fortaleza (0.64%), where the item regular courses increased by 8.84%. The lowest index was that of Belo Horizonte (0.08%), influenced by the 2.25% decrease in fuels.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from February 25 31 to March 29 2017 (reference) were compared with those in force from January 31 to February 24, 2017 (base).