Inflation calculated by the National Consumer Price Index (INPC) closed March at 0.51%, which shows loss of strength, as in February the index had scored 1.48%. In 12 months, the accumulated reaches 5.20%.
The data were released on Friday (11) by Brazilian Institute of Geography and Statistics (IBGE). The agency also revealed that the so -called official inflation, determined by the National Consumer Price Index (IPCA), was 0.56% in March.
The difference between the two indices is that the INPC investigates inflation for families with income of up to five minimum wages. The IPCA, for homes with income of up to 40 minimum wages. Currently the minimum is $ 1,518.
IBGE gives different weights to the surveyed price groups. In INPC, for example, foods represent 25% of the index, more than in the IPCA (21.86%), as families of lower income spend proportionally more food. From the reverse perspective, the airplane ticket price weighs less in the INPC than on the IPCA.
Food pressure
In March INPC, food products exerted the highest pressure in Brazilians pockets, rising 1.08%, which represents an impact of 0.27 percentage point (PP), ie more than half of the index.
See how INPC groups behaved in March:
- Food and Beverage: 1.08%
- Housing: 0.21%
- Residence Articles: 0.21%
- Clothing: 0.46%
- Transport: 0.26%
- Health and Personal Care: 0.44%
- Personal Expenses: 0.70%
- Education: 0.08%
- Communication: 0.19%
The price collection is made in ten metropolitan regions – Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, Sao Paulo, Curitiba, Porto Alegre – besides Brasilia and in the capitals Goiânia, Campo Grande, Rio Branco, Sao Luís and Aracaju.
Salary readjustment
The INPC directly influences the lives of many Brazilians, as the 12 -month mobile accumulated is often used to calculate the wage readjustment of various categories throughout the year.
The minimum wage, for example, takes November’s data in its calculation. Unemployment insurance, the benefit and ceiling of the INSS are readjusted based on December’s outcome.
According to IBGE, the investigation of INPC “aims to correct the purchasing power of salaries, through the measurement of price variations of the consumer basket of the lowest yield wage population.”
