IPCA
Inflation drops to 0.26% in May
June 10, 2025 09h00 AM | Last Updated: June 10, 2025 10h59 PM
Inflation in the country decelerated to 0.26% in May, with a drop of 0.17 percentage points (p.p.) from April (0.43%). The monthly result was mainly influenced by the advance in the Housing (1.19% and 0.18 p.p. impact), after an increase in residential electricity prices, which went from -0.08% in April to 3.62% in May, due to the change in the tariff flag. In the year, the cumulative inflation is 2.75% and, in the last 12 months, 5.32%. Data come from the Extended National Consumer Price Index (IPCA), released today (10) by the IBGE.
The survey manager, Fernando Gonçalves, highlights the influence of the main groups of products and services surveyed. “If we look at the three main groups, Food and beverages, Housing and Transportation, which together account for 57% of the IPCA, we see that the deceleration in food, which went from 0.82% in April to 0.17% in May, and the 0.37% drop in Transportation, end up offsetting the 1.19% increase in Housing, with an impact on the final result of the general index”.
Housing increased from 0.14% in April to 1.19% in May, with an increase of 3.62% in residential electricity, accounting for the main impact on the index, 0.14 p.p. “In addition to the adjustment in some areas surveyed and the increase in PINS/COFINS rates, the yellow tariff flag was in effect in May, with an additional charge of R$1,885 on the electricity bill for every 100 KWh consumed,” explains Gonçalves.
Food and beverages changed by 0.17% in May (a 0.04 p.p. impact) compared to 0.82% in April, the lowest monthly change since August 2024, when it had fallen 0.44%. This result was driven by the decline in tomatoes (-13.52%), rice (-4.00%), chicken eggs (-3.98%) and fruits (-1.67%). On the other hand, the most notable increases were potatoes (10.34%), onions (10.28%), ground coffee (4.59%) and meat (0.97%).
“The drop in tomato prices can be explained by an increase in supply due to the advance in the winter harvest, the opposite trend in the case of potatoes, where the winter harvest is still not enough to meet the demand. In the case of onions, issues related to the imports of the product from Argentina influenced the rise in prices,” points out the manager of IPCA.
On the other hand, the 0.37% drop in Transportation contributed to the deceleration of IPCA in May, exerting an impact of -0.08 p.p., with the declines in airfare (-11.31%) and fuels (-0.72%) as highlights. All fuels surveyed recorded declines in May: diesel (-1.30%), ethanol (-0.91%), vehicle gas (-0.83%) and gasoline (-0.66%).
“The drop in airfares is due to the fact that it is a period between the end-of-year and beginning-of-year holidays and the mid-year holidays, when airlines usually lower prices. As for fuel, the highlight is the reduction in hydrated alcohol, which is the type of alcohol used in vehicles, which suffered a drop in taxation, resulting in a decrease of 5 cents per liter,” Gonçalves highlights.
The other changes and impacts on the IPCA in May were Health and personal care (0.54% and 0.07 p.p.); Wearing apparel (0.41% and 0.02 p.p.); Personal expenses (0.35% and 0.04 p.p.); Communication (0.07% and 0.00 p.p.); Education (0.05% and 0.00 p.p.); and Household articles (-0.27% and -0.01 p.p.).
In addition to stability, inflation remains positive in all locations surveyed
Regionally, the biggest change (0.82%) occurred in Brasília due to the increase in residential electricity (9.43%) and gasoline (2.60%). The smallest change was found in Rio Branco (0.00%) due to the drop in chicken eggs (-9.09%) and rice (-6.26%).
INPC rises 0.35% in May
The National Consumer Price Index (INPC) rose 0.35% in May. The cumulative figure in the year is 2.85% and, in the last 12 months, 5.20%, below the 5.32% recorded in the previous 12 months. In May 2024, the rate was 0.46%.
Food products decelerated from April (0.76%) to May (0.26%). The change in non-food products went from 0.39% in April to 0.38% in May.
As for regional indexes, the biggest change (1.24%) occurred in Brasília driven by residential electricity (9.30%) and urban buses (12.90%). The smallest change occurred in Rio Branco (0.09%) due to the drop in chicken eggs (-9.09%) and rice (-6.26%).
More about the surveys
The IPCA refers to households with monthly income of 1 to 40 minimum wages, whereas the INPC encompasses households with monthly income of 1 to 5 minimum wages, living in the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, besides the Federal District and of the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju. Access the data on Sidra. The next IPCA result, relative to June, will be released on July 10.
