The Extended National Consumer Price Index 15 (IPCA-15) was 0.35% in May, quite below April's result (0.72%) and the biggest change from one month t the other in 2016 (0.86%). In the year, the IPCA-15 accumulates a high of 2.27%.

The cumulative index in 12 months was of 4.93%, above the 4.71% recorded in the previous 12 months. In May 2018, the rate was 0.14%.

The groups Household Articles (-0.36%) and Communication (-0.04%) had deflation from April to May. Conversely, Food and beverages (0.00%) and Education (0.00%) remained stable. The other groups ranged from 0.16% (Personal Expenses) to 1.01% (Health and personal care). This last group, together with Transportation (0.65%), had the biggest impact on the index of the month: 0.12 percentage points (pp).

The group Health and personal care (1.01%) had a slight deceleration compared to April (1.13%). The increase was mainly influenced by medicines (2.03%), reflecting part of the annual increase, in force since March 31, with a ceiling of 4.33%. Also noteworthy were health plan (0.80%) and personal hygiene articles which, after becoming 2.61% more expensive in April, increased by 0.62% in May.

Transportation rose 0.65% in May, but decelerated in relation to April (1.31%). This deceleration was driven by the 21.78% drop in airfares that represented the strongest negative impact (-0.09 p.p.) on the monthly index.

The increases in Transportation came from the pressure exerted by fuels (3.30%), particularly gasoline (3.29%), the highest individual impact (0.14 pp) on the index, with changes ranging between 1.09% in the Metropolitan Area of Salvador and 9.85% in Goiânia. Ethanol (4.00%) also exerted impact on the index (0.04 pp), mainly in Goiânia (16.45%).

Also in Transportation (0.65%), we highlight the change of urban buses (0.54%), due to the increases of 8.11% (since April 2) in Salvador (4.74%), and of 7.50% (since April 19) in Goiânia (6.25%).  Intercity buses (0.33%) had adjustments between 3.30% and 7.50% in Salvador (2.05%) in force since May 6 and the subway (1.02%) increased by 6.98 % in Rio de Janeiro (4.07%) as of April 2.

In Housing (0.55%), the item electricity increased 0.72% in May, above the rate registered in April (0.58%) considering the yellow tariff rate, effective since May 1, with the additional collection of R$0.01 per kwh consumed. The regions surveyed presented changes ranging from the 2.10% drop in Goiânia to the 6.34% increase in the Metropolitan Area of Fortaleza, considering the 7.39% increase in effect since April 22.

Other areas with increase were: Recife (4.03%), 5.56% as of April 29; Salvador (4.63%), 6.21% as of April 22 and Rio de Janeiro (-0.30%), where average readjustments of 11.53% and 9.72% were granted in concessionaires, effective since 15 of March. On April 1, these readjustments fell to 8.80% and 7.30%, respectively

Also in Housing, the result of the piped gas (-0.37%) reflects the average reduction of 1.40% in tariffs in Rio de Janeiro (-0.71%) since May 1st. The 0.43% change in the water and sewage rate is due to the increase of 4.72% in São Paulo (0.73%), in force since May 11; of 2.99% in Brasília (1.69%), since April 1st and 15.86% in Fortaleza (4.07%), as of March 24.

It should be noted that Petrobras readjusted the price of piped gas (0.89%) as of May 5, by 3.43%, in the refineries.

Responsible for about 25% of household expenses, the Food and Beverage group (0.00%) was stable in May, after rising 0.92% in April. Food away from home was up 0.48% and food at home decreased by 0.26%, after showing a rise of 1.43% in April. The highlights are carioca beans (-11.55%), fruits (-3.08%) and meat (-0.52%). On the high side stand tomatoes (13.08%) and potatoes (4.12%).

Regionally, prices in 8 of the 11 surveyed areas slowed down from April to May. The lowest index was in the Metropolitan Area of Rio de Janeiro (-0.06%), the only one with deflation, due to the drop in airfares (-25.43%), food away (-1.57%) and fruits (-6.38%). The highest result was in Goiânia (1.10%), where, in addition to the increase in gasoline  (9.85%) and ethanol prices (16.45%), there was also a 7.50% urban bus fees (6.25%), in force since April 19.

For the calculation of the IPCA-15, prices were collected between April 13 and May 15, 2019 (reference) and compared to those in force between March 16 and April 12, 2019 (base). The indicator refers to families with income from 1 to 40 minimum wages and covers the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, as well as Brasília and Goiânia. The methodology is the same as the IPCA, the difference lies in the collection period and geographic coverage.