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Brazil Recorded Inflation of 0.43% in February This Year



Brazil recorded an inflation rate of 0.43% in February, while in January the rate of price readjustment was 0.32%, the Brazilian Institute of Geography and Statistics (IBGE) reported today.

In accumulated in the year, Brazilian inflation amounts to 0.75%, a percentage higher than the 0.61% registered in the same period of 2018. In the last twelve months, the price adjustment in the country is 3.89%.

In 2019, the Brazilian government’s inflation target is 4.25%, which may vary 0.5 percentage points.

Seven of the nine categories surveyed by the IBGE showed a positive variation in prices.

The highest increase occurred in the education category and was driven by the readjustment of monthly installments of regular courses, which rose by 4.58% and had the highest individual impact on inflation in this period.

Food also exerted pressure on the index, but decelerated compared to January, when they rose 0.90%.

The price of products from the household food basket rose 1.24%, driven by the increase of bean (51.58%), potato (25.21%) and vegetables (12.13%).

Fernando Gonçalves, manager of the IBGE, pointed out that vegetables usually rise in price in this period.

“The demand tends to increase in the hotter seasons, so the variations are more pronounced,” he said.

Prices for the housing group rose 0.38% in February, pushed by a 1.14% increase in electricity, which impacted the general inflation index by 0.04 percentage points.

Meanwhile, the prices of the transport group fell by 0.34% and, according to the head of the IGBE who coordinates the calculation of the official inflation index of Brazil – National Extended Consumer Price Index (IPCA), Fernando Gonçalves, the fall of 16,65% in the prices of air tickets was the one that held the February inflation, with the greatest negative individual impact of -0.08 percentage points.

“Air travel has a big impact on the budget of families,” said Gonçalves. “It’s a time to end a summer vacation, the beginning of classes, so prices started to fall, also due to the increase at the end of last year.”