Food has contributed decisively to lower inflation in February, according to the Broad Consumer Price Index (IPCA), released last Friday (09) by the Brazilian Institute of Geography and Statistics (IBGE). Last month, food prices fell by 0.33%, contributing to the IPCA in the period was 0.32%, the lowest recorded in the last 18 years (since 2000) for the months of February.
According to the analysis of the Economic Core of the Confederation of Agriculture and Livestock of Brazil (CNA), were it not for this fall, the IPCA of February would rise from 0.32% to 0.40%. “Once again, this good result was only possible thanks to the good behavior of food prices,” CNA said in a technical statement. The item “food at home”, which weighs approximately two thirds of the food group measured by the IPCA, had an even greater fall of 0.61%.
Among the foods observed, the most significant fall was garlic (-7.94%), followed by carrots (-3.88%), English potatoes (-3.57%) and tomatoes (-3.29%), mainly reflecting the increase in supply, since these products are still in full harvest or harvest season.
Sugar was also another product with a sharp decline in February. The main reasons for this reduction were the high international supply, reinforced by the prospect of recovery in production in countries such as India and Thailand, and high domestic stock indices.