March posts highest inflation rate since 2003

With prices up 1.32%, the National Broad Consumer Price Index (IPCA), which gauges Brazil's official inflation rate, posted the highest monthly value since February 2003, when it had been reported at 1.57%. Taking into consideration the months of March alone, the figure is at its highest since 1995 (1.55%). Data were released today (Apr 8) by the Brazilian Institute of Geography and Statistics (IBGE).

In the 12-month period, the IPCA shows an 8.13% surge, which is above the target ceiling as set by the government (6.5%), and the highest rate since December 2003 (9.3%). The year-to-date percentage (3.83%), in turn, is the most dramatic for a quarter ever since 2003 (5.13%).

Inflation in March was driven chiefly by housing costs, whose inflation stands at 5.29%. Price hikes in this group may be ascribed mostly to the 22.08% increase in electric energy costs. Furthermore, this item alone accounted for more than half of the month's inflation rate.

Another major contribution to the index comes from foods, which saw a price increase of 1.17% in March. In February, foods and beverages faced a less significant climb: transportation posted 0.45%, down from February's 2.2%. Communication costs was the only one to face deflation in March: -1.16%.

Translated by Fabrício Ferreira