The Extended National Consumer Price Index 15 (IPCA-15) changed by 0.86% in May and stayed at 0.35 percentage points (p.p.) above the April rate (0.51%). Since 1996, when the IPCA-15 recorded an increase of 1.32% in May, there has been no record of a higher rate in months of May. Despite the accelerated pace of the index from one month to the other, the cumulative index in the year was 4.21%, below 5.23% of in the same period a year ago. Regarding the last 12 months, the index was 9.62%, higher than that of the previous 12 months (9.34%). In May 2015, the rate was 0.60%. The complete data for the IPCA-15 are available here.

Food products, whose prices rose 1.03% and medicines, which rose 6.50%, accounted for significant contributions to the IPCA-15. Together, they accounted for 0.48 percentage points and were responsible for more than half of the rate of the month, 56%.

In the group food and beverages (1.03%), which represented 0.27 p.p. of the index, basic items for household consumption kept their high figures: potatoes (29.65%), carioca beans (5.04%), cassava flour (4.45%) and milk (2.82%).

Medicines, with 6.50% in May following the 2.64% of April, contributed to an increase of price in these two months, as a result of the price rise of 12.50% in effect since the 1st of April. In the month, the item medicines, with 0.21 p.p., was responsible for the biggest individual contribution. As a result, health and personal carereached 2.54%, the biggest change in all the groups.

The water and sewage fare, an item in the group housing (0.99%) was also a highlight among the main contributions, with 0.13 p.p., coming right after medicines. That hike reached 9.03% in the month, influenced by the change of 35.93% in the metropolitan area of São Paulo, reflecting the end of the program of Incentive to Water Consumption Reduction, cancelled by means of Deliberation no. 641 of the São Paulo State Sanitation and Energy Regulatory Agency (ARSESP), of March 30, 2016. That, together with the end of bonus concession for increase of water consumption, which had been adopted by the Program, went into effect on May 12, meaning an rise of 8.40% over the price of fares.

Also in terms of water and sewage rates, there were increases in te metropolitan areas of Fortaleza (8.42%), reflecting part of the 11.96% hike in effect since April 23; of Curitiba (5.53%), where, on April 1st, there was readjustment of 10.48%; of Recife (1.35%), reflecting a remainder of the readjustment of 10.69% in effect since March 20; of Belo Horizonte (0.46%), showing a small part of the adjustment of 13.90% on May 13, which also includes the revision of the fare structure adopted by the water supply and sewage treatment company of the area.

Among the other items which contributed to the monthly index, the main ones were: cigarettes (3.70%), mobile telephone (3.40%), used cars (2.38%), TV, sound and computer equipment (2.38%), bath, bed and table linen (2.08%), reading (1.85%), new cars (1.11%), cleaning products (1.10%), heath insurance (1.6%), women's apparel (1.05%) personal hygiene products (0.92%), man power for small repair (0.87%), domestic workers (0.87%), condominium fees (0.81%), medical and dental services (0.79%) and men's wearing apparel (0.71%).

Regarding cigarettes , the hike of 3.70% reflected price adjustments between 3% and 14%, according to the brand of cigarette, in all the metropolitan areas surveyed from May 1st on, besides price reduction in other brands sold in Belo Horizonte, Curitiba e Goiânia. Regarding mobile telephony, the hike of 3.40% came from increases in the prices charged by one of a mobile operator in the month of April.

As for the items facing decrease in the month, the main ones were air fares, with -8.59%, andethanol, the liter of which became 8.54% cheaper.

About the regional indexes, the biggest result came from the metropolitan area of Fortaleza, with 1.19%, due to the contributions of water and sewage fares (8.42%), with price adjustment of 11.96% on April 23, and of electricity, with 6.86%, considering the price rise of 12.97% of the fare charged since April 22, and also the decrease of 8.40% of the share relative to the street lighting fee (CIP, in Brazil). The lowest indexes were those of Brasília (0.55%) andGoiânia (0.58%).

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In order to estimate IPCA-15, prices were collected from April 12 to May 14 (reference) and compared with those in effect from March 15 to April 11 (base). The indicator refers to families with monthly income of 1 to 40 minimum wages and it encompasses the Metropolitan Areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador,Curitiba, and also Brasília and Goiânia. The methodology is the same as the one used for IPCA; the difference lies in the period of price collection and in the geographic coverage.