Fall in price of food and air tickets were primarily responsible for slowing inflation in February
Prices continue to fall and reduce the cost of living of the Brazilian. In February, the Broad Consumer Price Index (IPCA), which measures the country's official inflation, closed at 0.33%, the lowest level for the month since 2000.
The performance represents a fall of 0.05 percentage points in relation to January and was significantly lower than the one registered in the same period of last year, when the rate advanced 0.9%. The result was still lower than expected by financial market analysts, who predicted a 0.38% rise in February, according to a survey released by the Central Bank on Monday.
Faced with the improvement of confidence indicators and the trend of falling interest rates, accumulated inflation in the last 12 months also slowed considerably, from 5.35% to 4.76%. On this basis of comparison, this is the lowest result for the month since 2010.
In February, contributed to the favorable result, a drop of 0.45% in the price of food and beverages. Among the foods that were cheaper in the month were carioca beans (-14.22), black beans (-9.22), garlic (-5.55), potatoes (-5.06) and The onion (-4.36).
In the case of public transport, the price of airfare prevented a higher increase of the group, and contributed strongly to the performance of the month. In February, tickets were 12.29% cheaper, down from 7.36% in January.
What is IPCA
The IPCA has been calculated by IBGE since 1980 and measures the official inflation of the country. For the calculation of this month's index, the prices collected in the period from January 31 to February 24, 2017 (reference) were compared with the prices in effect in the period December 30, 2016 to January 30, 2017 (base).