The Extended National Consumer Price Index - IPCA rose 0.31% in May and more than doubled when compared with the index of 0.14% in April, registering an increase of 0.17 percentage points (p.p.). Despite the rise from one month to the other, this was the lowest rate for May since 2007 (0.28%). As a result, the cumulative index in the year stayed at 1.42%, well below the index of 4.05% recorded in the same period of 2016 and the lowest cumulative rate up to May since 2000 (1.41%). Considering the last 12 months, the index fell to 3.60%, below the rate of 4.08% posted last month and the lowest rate in 12 months since May 2007 (3.18%). The IPCA stood at 0.78% in May 2016. The complete data of the IPCA can be accessed here.

Bereft of the discount applied in April, the electricity bills increased 8.98%, leading the ranking of the major contributions this month (0.29 p.p.). Accounting for a significant share of 3.3% in the expenditure of families, electricity was responsible for rising the IPCA from 0.14% to 0.31%.  The discounts applied by the Brazilian Electricity Regulatory Agency - Aneel to reimburse the consumers for an improper charge of the Charge of Reserve Power - EER in 2016 to fund the Angra III power plant made them drop 6.39% in April.

At regional level, the results varied from 3.80% to 24.05%. Goiânia recorded the lowest increase (3.80%) between April and May, as a result of the reduction of 19.93% in the Contribution for Public Lighting - CIP. Having its fare adjusted by 8.87% since April 29, the rise reached 24.05% in the metropolitan area of Recife.

As a result of electricity, Housing posted the highest group result (2.14%) and contribution (0.32 p.p.), dominating the month´s index and virtually canceling the ups and downs of the other groups of products and services.

Still considering the expenditures with Housing (2.14%), the items condominium fees (0.75%) and water and sewage fees (0.50%) also stood out. In the latter, the influence came from the metropolitan area of Curitiba, in which the bills increased 5.29% this month, reflecting part of the adjustment of 8.53% in force since May 18, coupled with the revision of the methodology of charging the consumers per consumption bracket.

In addition to Housing, the groups that registered positive changes varied from 0.08% (Education) to 0.98% (Wearing Apparel). Medicines (0.82%) from the group of Health and Personal Care (0.62%) also stood out. They reflected part of the annual adjustment in force since March 31, varying between 1.36% and 4.76%, according to the type of medicine. Considering the cumulative index in the year, medicines, which account for 3.48% of the expenditures of families, were 3.92% more expensive.

Among the three groups of products and services that dropped, Transportation (-0.42%) dropped the most. It was caused by airfare, 11.81% cheaper than in April, resulting in a big negative contribution to the month´s index (-0.05 p.p.). Moreover, the price of new car fell 0.85% and the liter of ethanol became 2.17% cheaper. On the other hand, the price of the liter of gasoline rose 0.33%, especially influenced by the metropolitan areas of Porto Alegre and Fortaleza, whose prices strongly increased: 4.97% and 4.62%, respectively.

In the group of Food and Beverages, which accounts for a quarter of the expenditures of families, the drop of 0.35% was leveraged by food for consumption at home (-0.56%), while food away from homestayed at 0.06%. Except for Rio de Janeiro, in which food for consumption at home changed 0.19%, the other 12 areas surveyed fell between -0.21% (Recife) and -1.72% (Fortaleza).

A number of important products in the typical Brazilian fare became cheaper from one month to the other, like rice (-1.98%) and whole chicken (-1.32%). Fruits (-6.55%) were the biggest negative contribution to the month´s index (-0.07 p.p.).

Concerning the food products whose prices increased between April and May,  onions (7.67%), potatoes (4.28%) and carioca beans (3.29%) stood out. 

At the regional level, the results stood between -0.13% in the metropolitan area of Belém and 0.72% in the metropolitan area of Recife. In Belém, the drop was leveraged by meat, which became 2.16% cheaper. In addition to the elimination of the discount in the electricity bills, the increase of 24.05% in electricity in Recife was also due to the adjustment of 8.87% in force since April 29.

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from April 29 to May 31, 2017 (reference) were compared with the prices in force from March 30 to April 28, 2017 (base).

INPC changes 0.36% in May

The National Consumer Price Index - INPC changed 0.36% in May and stayed above the rate of 0.08% in April by 0.28 p.p. In the cumulative index in the last 12 months, the rate decreased to 3.35%, standing below the rate of 3.99% registered in the 12 immediately previous months. In May 2016, the INPC recorded 0.98%.

Food products dropped 0.44% in May, whereas it rose 0.54% in the previous month. The group of Non-food products changed 0.73%, above the rate of -0.13% in April.

Regarding the regional indexes, the highest ones were reported in Campo Grande and in the metropolitan area of Recife (both with 0.61%), influenced by electricity. In addition to the elimination of the discount in the bills, electricity changed 16.40% in Campo Grande, also pressed by the increase of 30.26% in PIS/COFINS. In Recife, the increase was due to the adjustment of 8.87% in force since April 29, resulting in an increase of 24.64%. The lowest index was registered in the metropolitan area of Belém (-0.09%), in which meat dropped (-1.64%).

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from April 29 to May 31, 2017 (reference) were compared with the prices in force from March 30 to April 28, 2017 (base).