The Extended National Consumer Price Index (IPCA) of April recorded a change of 0.14% and stood below the 0.25% rate of March by 0.11 percentage points (p.p.). As a result, the index in the year is at 1.10%, quite below the 3.25% registered in the same period a year ago. In the last twelve months, the index was down 4.08%, below the 4.57% result of the previous month, becoming the lower rate in 12 months since July 2007, when it was at 3.74%. In April 2016, the IPCA was 0.61%.

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The reduction in the IPCA rate from 0.25% to 0.14% between March and April was due to electricity bills, cheaper by 6.39%, and to fuels, whose prices fell 1.95%. With the drop in the bills, electricity, responsible for the significant share of 3.5% in family's expenditures, represents the highest negative impact in the month ranking (-0.22 p.p.). Fuels, responsible for an even more significant share, 5.0% of family's expenditures, are next with -0.10 p.p.

The 6.39% drop in the item electricity represented discounts over bills, as a result of the decision of the Brazilian Electricity Regulatory Agency (Aneel), so as to make up for the overcharge, in 2016, of the so-called Reserve Energy Charge (EER) destined to pay the Angra III power plant. In regional terms, as shown in the following table, the less intense drop, of -0.73%, was recorded in the Metropolitan Area of Rio de Janeiro, since, together with the aforementioned discount, there was part of the 9.81% increase in force on the tariffs of one of the concessionaires since March 15. The sharpest decrease, of 13.21%, was registered in Campo Grande, where, besides the discount and other reductions in the taxes, the annual increase was negative, of -1.92% - in force since April 08.

Electricity, therefore, caused a reduction in the expenses with the item housing (-1,09%), which was at the same time the sharpest drop of the group an the sharpest impact, as shown in the following table. In that same group, another highlight with a 2.63% increase is the price of bottled gas, which reflects part of the 9.8% increase in force since March 21.

The slight drop in the group transportation (-0.06%) was influenced by fuels (-1.95%), since the liter ofgasoline became 1.75% cheaper and ethanol, 3.33%. On the other hand, there was the pressure made byairfares, with a high of 15.48%, and by urban bus, with 0.69%. Concerning buses, there was increase of 7.73% in the Metropolitan Area of Porto Alegre, where the 8.00% increase was in force on March 31, besides the 6.67% increase in Recife, area where, on March 26, the Sunday half-price ticket was suspended.

Among the groups with a high, health and personal care (1.00%) stands out, with medicine as the top impact in the month's index. That is due to the 1.95% price rise, generating an impact of 0.07 p.p. The item reflected the annual increase in force since March 31, ranging from 1.36% to 4.76%, according to the type of medicine.

In food and beverages the change was 0.58%, with increase in the prices of several products, liketomatoes (29.02%) and potatoes (20.81%), as shown in the following table.

As opposed to the previous items, some products, as soybean oil (-4.17%) and rice (-1.69%) became cheaper from one month to the other, as it can be seen in the table below.

In relation to the indexes by area, the results stood between -0.22% recorded in the Metropolitan Area ofSalvador and the 0.54% of the Federal District. The table below shows the results by area surveyed.

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of 01 to 40 minimum wages, whatever the source, and it encompasses ten Metropolitan Areas in the country, besides Brasília and the municipalities of Goiânia and Campo Grande. In order to estimate the index of the month, the prices collected from March 30 to April 28 of 2017 (reference) were compared with those in force from February 25 to March 29, 2017 (base).

INPC changes 0.08% in April

The National Consumer Price Index - INPC posted a change of 0.08% in April and was below March's rate (0.32%) by 0.24 p.p. In the cumulative index of the last 12 months of the year, the index decreased to 3.99%, staying below the 4.57% recorded in the previous 12 month-period. In April 2016, the INPCrecorded 0.64%.

Food products had a high of 0.58% in April, while in the previous month the change had been of 0.32%. The group of non-food products had a change of -0.13%, below the rate of 0.32 of March.

About the regional indexes, the highest was found in the Metropolitan Area of Recife (0.60%). The lowest index was recorded in the municipality of Campo Grande (-0.38%).

INPC  has been calculated by IBGE since 1979. It refers to families with monthly income of 01 to 05 minimum wages, whatever the source. It encompasses ten metropolitan areas in the country, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of the month, the prices collected from March 30 to April 28 of 2017 (reference) were compared with those in force from February 25 to March 29, 2017 (base).