After reaching 1.62% in March, inflation rose 1.06% in April. This was the highest figure for April since 1996 (1.26%). The cumulative index in the year stayed at 4.29% and, in the last 12 months, at 12.13%, above the rate of 11.30% registered in the 12 immediately previous months. The monthly change had been 0.31% in April 2021. The data are from the Extended National Consumer Price Index (IPCA), released today (11) by the IBGE.

In April, the major impacts came from food and beverages - highest change (2.06%) and biggest impact (0.43 p.p.) - and from transportation - rise of 1.91% and 0.42 p.p. of impact. Together, the two groups contributed with nearly 80% of the April´s IPCA.

“Food and transportation, which had already risen in the previous month, remained rising in April. In food and beverages, the rise was leveraged by the increase in food for consumption at home (2.59%). Long-life milk rose more than 10%, exerting the biggest contribution (0.07 p.p.), as well as important components of the consumer´s basket, like potatoes (18.28%), tomatoes (10.18%), soybean oil (8.24%), French bread (4.52%) and meat (1.02%),” lists André Almeida, an analyst of the survey.

In the case of transportation, the rise was mainly leveraged by the increase in the prices of fuels, which remained rising (3.20% and 0.25 p.p.) as in the previous month, highlighted by gasoline (2.48%), the product with the biggest positive impact (0.17 p.p.) on the month´s index.

“Gasoline is the sub-item with the highest weight in the IPCA (6.71%), though the other fuels also rose. Ethanol rose 8.44%, diesel fuel, 4.74%, as well as vehicular gas (0.24%),” adds Almeida.

The groups of Health and personal care (1.77%) and Household articles (1.53%) also accelerated. Housing was the only group to drop in the April´s IPCA (-1.14%). The other changes ranged between 0.06% in Education and 1.26% in Wearing apparel.

The acceleration in the group of Health and personal care (1.77%) is mainly due to the rise noticed in the prices of pharmaceuticals (6.13%), which contributed with 0.19 p.p. to the overall index. On April 1st, an adjustment of 10.89% was authorized in the prices of medicines, depending on the therapeutic class. The highest changes in this item came from hormonal medicines (7.96%) and hypotensive and hypocholesterolemic medicines (6.81%).

Moreover, products of personal hygiene also rose (0.85%), impacting 0.03 p.p. Health insurance plans (-0.69%) remained on the negative side, reflecting the negative adjustment of -8.19% applied by the National Regulatory Agency for Private Health Insurance and Plans (ANS) last year.

The group of housing (-1.14%) was the only one to record a negative change in April, due to the drop in the prices of electricity (-6.27%).

“The tariff flag changed on April 16 from the water scarcity flag to the green tariff flag, which does not impose any charge on the electricity fare. The water scarcity flag was in force since September last year, adding R$14.20 to each 100 kWh consumed,” explains the analyst.

On the other hand, bottled gas (3.32%) and piped gas (1.38%) rose. The last sub-item was adjusted by 7.72% in Rio de Janeiro (4.07%) since March 16.

IPCA rises in all the areas surveyed

The survey also shows that all areas surveyed rose in April. The highest change occurred in the metropolitan area of Rio de Janeiro (1.39%), where the rises of pharmaceuticals (6.38%) and gasoline (2.62%) weighted. The lowest change, in turn, occurred in the metropolitan area of Salvador (0.67%), where the prices of gasoline (-3.90%) and electricity (-3.41%) dropped.

INPC was 1.04% in April

The National Consumer Price Index (INPC) rose 1.04% in April, below that registered in the previous month (1.71%). It was the highest change for April since 2003 (1.38%). The INPC accumulates a rise of 4.49% in the year and, in the last 12 months, of 12.47%, above the rate of 11.73% registered in the 12 immediately previous months. In April 2021, the rate had been 0.38%.

Food products changed from 2.39% to 2.26% in April. Non-food products also decelerated and recorded 0.66% against 1.50% in the previous month.

The INPC rose in all the areas surveyed. The lowest figure was reported in the municipality of Goiânia (0.65%), due to the drop in electricity (-10.49%). The highest change, in turn, was registered in the metropolitan area of Rio de Janeiro (1.45%), influenced by the rises of 13.57% in long-life milk and of 6.25% in pharmaceuticals.

More about the surveys

The IPCA encompasses households with earnings between 1 and 40 minimum wages, whereas the INPC, households with earnings between 1 and 5 minimum wages, living in the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, as well as in the Federal District and in the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju. Please access the data at Sidra.