Alcohol and gasoline led to the reduction of IPCA in April,
whereas medicines were the main contributors to the rate of the month

The Extended National Consumer Price Index (IPCA) of April changed 0.21% and was below the rate of 0.43% of March.  In the four first months of the year, the index accumulated a rate of 1.65%, lower than the one of the previous year, when it reached 2.68% in the same period. In the last twelve months, the accumulated index was 4.63%, also below the rate of 5.32%, registered in the twelve immediately previous months. In April 2005, the index was 0.87%.

The fall in the rate from one month to the next occurred mainly due to a major supply of agricultural products, which led especially to the stabilization of the price of fuel alcohol, whose hike had been influencing the IPCA in the previous months.  As a result of the harvest and  commercialization of sugar cane, the liter of alcohol fell by 0.11%. The product had been rising since July of the previous year and reached a hike of 12.85% in March.  For a liter, the consumer was paying 27.41% more than in December of the previous year.

As alcohol, gasoline had the same performance and also had decrease of 0.09%.  In March, gasoline, which had recorded increases in the prices as a consequence of the hike of alcohol as well as a consequence of modification in its composition, was the item which brought the major individual contribution to the index: 0.17 percentage points.  This way,  the consumer paid 4.50% more per liter than in December of the previous year.

Besides fuels, some products such as TV, audio and computer equipment (-1.26%), household appliances (-1.06%) and interstate bus fares (-1.67%) turned cheaper, while urban bus fares continued stable.

Non-food products changed from 1.14% in March to 0.34% in April.  The hike of 2.03% in medicines reflected the average readjustment of 5.5% approved by the Regulatory Chamber of the Market of Medicines (CMED) regarding the prices of approximately 20 thousand products and was the major individual contribution to the IPCA in the month: 0.08 percentage points.

Among the non-food products, apparel, with hike, stood out.  From 0.21% in March it increased to 1.18% in April and had a complete commercialization of the Autumn-Winter collection.  Electricity, which changed from 0.38% to 1.23%, mainly due to the metropolitan areas of Rio de Janeiro (3.55%) and Belo Horizonte (3.43%), also stood out. In Rio de Janeiro occurred a readjustment of 0.50%, on March 15, of the value of the kilowatt per hour of one of the surveyed companies. Besides, there was an increase in the percentage value charged of the contribution PIS/COFINS.  In Belo Horizonte, the hike was a consequence of the readjustment in April 8 by 5.16% of the value of the kilowatt.  Tariffs of cabs (1.82%), condominium values (1.25%) and health plans (1.04%) also increased.

Considering food products (-0.27%), the prices of chicken, influenced, mainly, by the crisis that occurred due to the problems of poultry raising, continued falling and were 5.93% cheaper in April.  Despite having been the major individual negative contribution to IPCA (-0.04 percentage points), the price decrease was less significant.  Chicken prices fell by 12.15% in March, when they brought a negative contribution of 0.10 points to the IPCA.  In relation to December of the previous year, the kilogram is already 24.72% cheaper for the consumer.

Besides chicken, beans (-3.51%) with rice (-2.33%) and other food products turned cheaper, maintaining the rhythm of fall of the group food products and beverages. This group fell from -0.28%, in February, to -0.24%, in March, and to -0.27% in April.  With -0.69% in the year, only the month of January had a positive result: 0.11%.

Sugar, as well as alcohol, reflecting the commercialization of the harvest of sugar cane, although increasing, showed a rhythm of growth of prices less intense than in the previous month.  Refined sugar changed from 5.38% in March to 1.76% in April and crystallized sugar from 6.81% to 2.75%.  Regarding pasteurized milk (from 2.82% to 3.21%), the continuity of price increases can be attributed to seasonal factors.

Regarding the surveyed areas, Belo Horizonte (0.51%), Fortaleza (0.50%) and Porto Alegre (0.48%) had the major indexes. The lowest results, with deflation, were registered in Curitiba (-0.15%) and Goiânia (-0.29%).  The metropolitan area of São Paulo (0.07%) also stood out since it had a result considerably lower than the monthly rate of IPCA, 0.21%.

The IPCA has been calculated by IBGE since 1980, and it refers to families with monetary income, from any source, ranging from 01 to 40 minimum wages. It includes nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília.

INPC of April changed

The National Price Consumer Index - INPC changed 0.12% in April, a result lower than the one of March (0.27%).  The accumulated index of the year was 1.00%, considerably lower than in the same period of the previous year (2.68%).  In the accumulated index of the last twelve months, the rate was 3.34%, also below the value of 4.15% relative to the twelve immediately previous months. In April 2005, the index had been 0.91%.

In April, food products changed negatively by 0.34%, while non-food products increased by 0.30%.

The major regional index was recorded in Belo Horizonte (0.43%). The lowest results, with deflation, were registered in Goiânia (-0.63%), Curitiba (-0.07%) and São Paulo (-0.06%).

The INPC has been calculated by IBGE since 1979, and it refers to families, headed by a salaried worker, with monetary income ranging from 01 to 08 minimum wages.  It includes nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília.  To calculate the index of the month, prices collected in the period March 29 to April 27 (reference period) were compared to prices charged in the period February 25 and March 28 (base period).