Much of the impact of the drought has already been absorbed by inflation, but the increase in prices will still be felt over the next couple of months. That's what the coordinator of the General Price Indexes (IGPs) of the Brazilian Institute of Economics (FGV/IBRE), Salomão Quadros, indicates in an interview with Valor Econômico about the progress of the General Price Index-Market (IGP-M) in March.The index jumped to 1.67%, after increasing 0.38% in February, recording the highest increase since July 2008 and the highest percentage for the month of March since 1999. According to Quadros, at least one percentage point of this increase is due to the effect of the drought on foods. Agricultural raw materials showed a 3.25% change this month, and if we look at the sector, the rate ended up at 6.16%. All these figures had an impact in the supply chain, and the food industry transferred these values to the consumer, he said.For now, the increases to the consumer are more concentrated in fruits, greens and vegetables, pulled by products such as tomatoes and potatoes - which tripled the adjustment of retail food in March, from 0.49% to 1.55%. Prices for wholesale agricultural products, on the other hand, skyrocketed, driven by the prices of soybeans, corn, cattle and coffee.However, according to Quadros, it is still not possible to say whether this increase is permanent or temporary. We need to better understand the extent of the losses of the last indexes, which were not so despicable, nor gigantic, he explained.According to IBRE, the inflation increase has been a recurring concern in 2014.Please click here and learn more.