Fall of prices influenced the decrease of May’s IPCA

The Extended Consumer Price Index – IPCA changed by 0.10% in May, a lower figure than in  April (0.21%). The index accumulated in the month was 1.75%, lower than last year (3.18%). In the last 12 months, the accumulated index was 4.23%, also below the rate in the immediately previous 12 months. In May 2005, the index was 0.49%. The reduction from one month to the other was caused, mainly, by the fall of the prices of alcohol and to the small change of medicines, apparel, electricity and condominium taxes.

The lowest individual contribution in May came from alcohol (-0.16%). The price of a liter, as a result of the latest harvest and the of commercialization of sugarcane, was 11.06% lower. The price of this product had been rising since July last year, and had hike of 12.85% occurred in March. Even with this fall in May, in comparison with December last year, the liter rose by 13.35%. The price of gasoline became 0.44% higher in relation to the previous month, with hikes observed in the metropolitan areas of Recife (4.46%), Curitiba (4.33%) and Goiânia (2.43%). See the changes of alcohol and gasoline in May and accumulated in the year:

The change of medicine prices, even with rise of 1.41% and individual contribution of 0.06 percentage points, affected the low result of the IPCA in May. In April, medicines changed by 2.03%. The same way, apparel, despite the seasonal hike resulting from the change of season, had a lower change than in the previous month (from 1.18% to 0.90%). A similar effect affected electricity (from 1.23% to 0.24%) and condominium taxes (from 1.25% to 0.47%), also with a lower decrease.

This way, non-food products changed from 0.34% in April, to 0.14% in May, even with the hike observed in the following items: cooking gas (from 0.67% to 1.26%), health insurance plans (1.04% in the last two months) and new cars (from -0.16% to 0.77%).

In terms of food products, despite the fall of prices of several products, the result of the group was close to zero and showed increase in relation to April, having changed from -0.27% to -0.03%. The prices of chicken rose again, being 8.42% more expensive (-5.93% in April), with a contribution  from 0.06 percentage points. Besides chicken there was rise of the prices of meats (from -1.33% to 1.17%). Pasteurized milk (from 3.21% to 1.40%), even after the rise, decelerated in relation to the previous month.

In terms of areas, the highest index was that of Salvador (0.50%), due, mainly, to the hike of medicines (2.26%), electricity (1.75%), cleaning products (1.41%), condominium taxes (1.30%) and alcohol (1.11%). The lowest index was registered in Fortaleza (-0.30%), which had deflation, as well as Brasília (-0.25%), Goiânia (-0.10%) and São Paulo (-0.01%).

To calculate the index of the month, prices collected in the period April 28 to May 29 (reference) were compared to prices charged in the period March 29 and April 27 (base). 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 changed by 0.13% in May

The National Consumer Price Index – INPC changed by 0.13% in May, a result similar to that of April (0.12%). The rate accumulated in the year was 1.13%, extremely below that of the same period in the previous year (3.30%). The rate accumulated in the last 12 months was 2.75%, also below the rate in the immediately previous 12 months. In May 2005, the index was 0.70%.

In May, food products changed by 0.12%, whereas food products rose 0.23%. About the areas surveyed, the highest index was that of Salvador (0.48%). The lowest result, with deflation, was that of Fortaleza (-0.48%) and Belo Horizonte (-0.11%).  

To calculate the index of the month, prices collected in the period April 28 to May 29 (reference) were compared to prices charged in the period March 29 and April 27 (base). 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. 

Note: According to what was informed in December 2005, the callculation of the Extended Consumer Price Index – IPCA and of the National Consumer Price Index – INPC of  July will include the results relative to expenses from the Consumer Expenditure Survey – POF, which was conducted from July 2002 to August 2003. The INPC and the IPCA results for July 2006, based on prices collected between June 28 and July 28 and to be released on August 11, will be the first ones to use the new weighing structure. See technical note (01/2006), with all the information about Updating of Weighing Structures from POF 2002-2003, on the IBGE web site (www.ibge.gov.br), clicking on “Destaques” (available only in Portuguese).