IPCA
Medicines and health insurance have an impact on inflation in April
May 10, 2018 09h00 AM | Last Updated: May 10, 2018 02h02 PM
Inflation recorded an increase of 0.22% in April, due to the rise of prices of pharmaceuticals and health insurance. The Extended National COnsumer Price Index (IPCA), released today by the IBGE, show the rate is 0.13 percentage points bigger than in March (0.09%). The cumulative index in the year was 0.92%, the lowest figure for a month of April since the adoption of Real as the Brazilian currency. The index relative to the last 12 montha was 2.68%.
According to the manager of the Extended National Consumer Price Index (IPCA), Fernando Gonçalves, the index acceleration is related to the group Health and Personal Care, which, with an increase of 0.91%, accounted for half of the April rate.
“Of the 0.22% of April, 0.11 percentage points came from Health and Personal Care. Two items from that group, of administered prices, the highlights were: health insurance, with 1.06%, and medicines, the prices of which have risen, on average, 1.52%”, says Fernando.
The group Wearing Apparel also stood out, with a change 0.62%, the second main impact (0.04 p.p.) on the overall result. According to Fernando, “the coming of a new collection affected female apparel, which got 1.66% more expensive”.
In Food and Beverages (0.9%), whereas food for consumption at home accelerated from March to April (from -0.18% to 0.27%), food away from home recorded a decrease of 0.22%, after a hike of 0.52% in March. Fernando says that, in April, sales and discounts given to clients made up for the higher prices charged before.
Among food products, long-life milk, 4.94% more expensive, was another individual highlight, and even had an impact on the price of meat (-0.31%). “There was a decrease in the supply of milk because of the low prices charged last year. That led to an exit of producers and an increase of cattle slaughter, thus resulting in a lower price for meat”.
Also relevant to the index were the prices of potato (-4.31%), with the biggest supply, and of whole chicken (-2,.8%). Fernando explains that, in the case of chicken, “there was high supply and little consumption. The European embargo may be an influential factor too; although it is expected to start on May 15, there has been an impact on chicken prices."
In the group Transportation, there was stability in April. The main hikes were car repair (1.31%)and gasoline (0.26%), making up for the fall in ethanol (-2.73%) and air fares (-2.67%). “Last year sugar reached high output figures and sugarcane has been directed to the production of ethanol. That has helped reduce prices in Brazil."
In Housing, the 0.17% increase was mainly due to electricity (0.99%). This item was a highlight with price rises in five metropolitan areas: Rio de janeiro, Porto Alegre, Fortaleza, Salvador and Campo Grande.
In order to estimate the index of the month, the prices collected from March 30 to April 27 of 2018 (reference) were compared with those in force from March 02 to March 29, 2018 (base).
