The Extended National Consumer Price Index (IPCA) of May presented a variation of 0.43%, 0.14 percentage point below the rate of 0.57% recorded in April. Thus, May recorded the lowest IPCA of the year. With the result of May, the accumulated in the year was 3.09%, much above the rate of 2.20% related to the same period of 2009. Considering the last 12 months, the index was 5.22%, inferior to that accumulated in the immediately previous 12 months (5.26%). In May, 2009, the rate had been 0.47%.

Food products led to index deceleration from April to May, although the item “Meals out of the household”, was the main impact, with increase of 1.15%, and having contributed 0.05 percentage points to the monthly index.

Having affected the index significantly since January, the increase of food products was reduced to 0.28%, in May, after recording 1.45% in April. This is the lowest result of the group Food products and beverages this year, after it reached its highest result so far: 1.55% in March.

Harsh climate conditions were the main causes of this increase, resulting in an accumulated index of 5.48% from January to May, significantly more than throughout the whole year of 2009, at the end of which the rate of food products was 3.18%.

Table I presents the main products whose prices rose in May, but some of them present reduction in the increase rate in relation to the previous month.

It is observed that some food products have even become cheaper from a month to the other: tomatoes,  with decrease of 23.78%, and crystallized sugar, with  -7.66%, besides others, as shown in table II (on the next page).  

As a result, once the group Food products and beverages, with 0.28% of change, represented a contribution of 0.06 percentage points for the result of 0.43% of the month’s IPCA, the groups of non-food products changed from 0.31% to 0,48%, representing contribution of 0.37 percentage points.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of 01 to 06 minimum wages and a salaried householder. The index encompasses nine metropolitan areas of Brazil, besides the municipality of Goiânia, and Brasília. 

See below the results by group:

Energy has become 1.23% more expensive, after decrease of 0.13% in April, resulting from figures in the metropolitan areas of Salvador (8.23%), with readjustment of 6.7% on April 22; Fortaleza (5.41%), with readjustment of 7.6% on the same day; Rio de Janeiro (3.67%), with the com a charging of Contribution to the Coverage of Street Lighting Costs, starting on April 20, and Belo Horizonte (2.04%), where there was increase of the PIS/ PASEP and COFINS charge.

The salaries of domestic workers (1.12%), new cars (0.76%), apparel (0.91%) and medicines (1.16%), the latter being readjusted, on average, 4.6% since March 31st, were also among the main highlights of May, even presenting reduction of increase rate in relation to April (1.60%, 1.04%, 1.28% and 2.22%, respectively).

Condominium fees (from -0.60%, in April, to 1.17%, in May), sewage and water fares (from 0.08% to 0.84%), furniture (from -0.36% to 1.35%), articles of personal hygiene (from 0.05% to 0.82%) and residential rents (from 0.57% to 74%) are examples of items characterized by rising prices.

In terms of fuels, there was less significant decrease, and this item changed from -1.23% in April to -0.44% in May. Ethanol changed from -8.37% to -5.77%, whereas gasoline, whose prices had fallen by 0.56% in April, remained stable in May.

Among the indexes by area, the highest rate was that of the metropolitan area of Fortaleza (0.99%), where gasoline became 7.69% more expensive in May. With very similar rates, the lowest indexes were those of Recife (0.07%) and Porto Alegre (0.06%). In Recife, the highlight was the increase of 7.25% in electricity bills, due to the decrease of FEE by 8.87% on April 29. In Porto Alegre, the main highlight was food products, which became 0.50% more expensive, on average.

See below results by area surveyed.

For the calculation of the monthly index, prices collected from April 29 to May 28, 2010 (reference), were compared with prices in effect from March 30 to April 28, 2010 (base). IPCA has been calculated by IBGE since 1980, and it refers to families with monetary income ranging from 01 to 40 minimum wages, whatever the source, with a salaried head of the household and encompassing nine metropolitan areas in the country, besides the municipality of Goiânia and Brasília.

NATIONAL CONSUMER PRICE INDEX - INPC

The National Consumer Price Index - INPC presented change of 0.43% in May, below the result of 0.73% recorded in April. As a result, May recorded the lowest INPC in the year, with accumulated results 3.50 %, significantly above the rate of 2.32% relative to the same period in 2009. Considering the last twelve months, the index was 5.31%, less than the 5.49% relative to the immediately previous twelve months. In May 2009, INPC was 0.60%.

The change of food products was 0.34%, whereas non-food products increased 0.47%. In April, the results were 1.72% and 0.30%, respectively.

For the calculation of the monthly index, prices collected from April 29 to May 28, 2010 (reference) were compared to those in effect from March 30 to April 28 (base).

Among the indexes by area, the highest one was recorded in Salvador (0.98%), with change of 1.09% in food products. Other contributions came from electricity, with 8.14% and water and sewage fares, with 6.52%. Electricity accounted for part of the readjustment of 6.74% granted on April 22, whereas water and sewage fees had average rise of 6.98% on May 1^st. The lowest index was that of Recife (-0.04%) mainly due to the decrease of 7.22% in electricity bills, caused by the 8.87% decrease in bills granted since April 29.

The table below presents indexes by area surveyed: