IPCA was -0.38% in May

June 10, 2020 09h00 AM | Last Updated: June 15, 2020 11h27 AM

The Extended National Consumer Price Index - IPCA changed
-0.38% in May, while the rate registered in April was -0.31%. That was the lowest monthly change since August 1998 (-0.51%). In the year, the IPCA accrues a drop of 0.16% and, in the last 12 months, a rise of 1.88%, below the rate of 2.40% recorded in the immediately previous 12 months.  In May 2019, the rate had been 0.13%.

Period Rate
May 2020 -0.38%
April 2020 -0.31%
May 2019 0.13%
Cumulative in the year -0.16%
Cumulative in 12 months 1.88%

Among the nine groups of products and services surveyed, five recorded deflation in May.  The biggest negative impact this month, -0.38 percentage points (p.p.), came from Transportation, whose drop of 1.90% was less intense than that in April (-2.66%). Other highlights were Wearing apparel and Housing, which retreated 0.58% and 0.25%, respectively. On the side of the highs, Household articles increased 0.58% against the decline in the previous month (-1.37%). Food and beverages (0.24%) decelerated in relation to April (1.79%). The others stood between the drop of 0.10% in Health and personal care and the rise of 0.24% in Communication.

Group Change (%) Impact (p.p.)
April May April May
Overall Index -0.31 -0.38 -0.31 -0.38
Food and Beverages 1.79 0.24 0.35 0.05
Housing -0.10 -0.25 -0.02 -0.04
Household Articles -1.37 0.58 -0.05 0.02
Wearing Apparel 0.10 -0.58 0.00 -0.03
Transportation -2.66 -1.90 -0.54 -0.38
Health and Personal Care -0.22 -0.10 -0.03 -0.01
Personal Expenses -0.14 -0.04 -0.01 0.00
Education 0.00 0.02 0.00 0.00
Communication -0.20 0.24 -0.01 0.01
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços    

Like in April, the result of the group of Transportation (-1.90%) was influenced by the change in the fuel prices (-4.56%). The biggest impact on the month´s index was negative (-0.20 p.p.) and came, once again, from gasoline (-4.35%), whose drop was less intense than that registered in April (-9.31%). Ethanol followed the same movement, with a change of -5.96% in May against -13.51% in April, whereas diesel fuel (-6.44%) recorded a result close to last month (-6.09%), with an impact of -0.01 p.p.

Airfare declined 27.14%, contributing with -0.16 p.p. to the May´s IPCA. All the regions surveyed posted a drop in the prices, from -15.55% in Rio Branco up to -34.54% in Campo Grande.

Still in Transportation, the negative change in the sub-item taxi (-0.11%) was due to Rio de Janeiro (-0.52%), which suspended on May 22 the adjustment in the fare in force since January this year.

In the group of Wearing apparel (-0.58%), women’s wearing apparel (-0.88%), footwear and accessories (-0.74%), men’s wearing apparel (-0.55%) and children´s wearing apparel (-0.29%) dropped. Jewels and bijous, on their turn, rose 1.00%, due to the sub-item jewel (1.67%).

In Housing (-0.25%), the biggest negative contribution (-0.02 p.p.) came from  electricity (-0.58%). In May, the Brazilian Electricity Regulatory Agency (Aneel) decided to maintain the green tariff flag, which does not impose any additional charge on the electricity bills until the end of this year. The areas surveyed changed from the fall of 6.10% in Fortaleza up to the rise of 3.26% in Goiânia. In the sub-item piped gas (-0.76%), the drop was due to the average reduction of 2.60% in the fare in Rio de Janeiro (-2.53%), in force since May 1st.

The group of Household articles (0.58%) registered the highest positive change this month, influenced by the rise in TV, sound and computer equipment (4.57%), which contributed with 0.03 p.p. to the May´s IPCA. The prices of household appliances and equipment (1.98%) also increased, and the items of furniture fell 3.17%, a behavior close to that in the previous month (-2.92%).

In contrast, the group of Food and beverages (0.24%) decelerated in relation to April (1.79%). The prices of the items such as carrots (-14.95%) and fruits (-2.10%) retreated in May, causing food at home to change from 2.24% to 0.33%. On the side of the rises, the highlights were onions (30.08%), potatoes (16.39%) and carioca beans (8.66%). Meat rose 0.05%, after four consecutive months of drop.

Food away from home also decelerated between April (0.76%) and May (0.04%). Snacks changed from 3.07% to 0.83% and meals recorded the most intense drop, changing from -0.13% in April to -0.34% in May.

The 16 areas surveyed posted deflation in May. The lowest index was registered in the metropolitan area of Belo Horizonte (-0.60%), with the drop in the prices of gasoline (-6.61%) and airfare (-28.14%). On the other hand, the highest result was recorded in the metropolitan area of Recife (-0.18%), due to the rise in the prices of onions (31.31%) and new car (1.86%) and also to the less intense drop in the prices of gasoline (-3.59%).

Area Regional Weight(%) Change (%) Cumulative Change (%)
April May In the year 12 months
Belo Horizonte 9.69 -0.21 -0.60 -0.07 1.93
Campo Grande 1.57 -0.43 -0.57 0.10 2.32
Curitiba 8.09 -1.16 -0.57 -1.46 0.85
Fortaleza 3.23 -0.12 -0.52 0.64 2.57
Aracaju 1.03 0.15 -0.50 1.11 1.98
Vitória 1.86 -0.09 -0.48 0.18 1.78
Salvador 5.99 -0.16 -0.47 0.04 1.66
Porto Alegre 8.61 -0.05 -0.44 -0.48 1.18
Belém 3.94 -0.13 -0.39 -0.08 2.95
Rio Branco 0.51 -0.51 -0.33 -0.55 0.67
Rio de Janeiro 9.43 0.18 -0.28 0.40 2.20
São Paulo 32.28 -0.37 -0.28 0.01 2.32
Brasília 4.06 -0.58 -0.28 -0.86 1.32
Goiânia 4.17 -0.53 -0.25 -1.25 1.11
São Luís 1.62 -0.44 -0.22 -0.30 0.91
Recife 3.92 -0.19 -0.18 0.61 1.67
Brasil 100.00 -0.31 -0.38 -0.16 1.88

The IPCA has been calculated by the IBGE since 1980. It refers to households with monthly income of 1 to 40 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. In order to estimate the index of the month, the prices collected from April 30 to May 28, 2020 (reference) were compared with the prices in force from March 31 to April 29, 2020 (base).  It should be stressed that the IBGE suspended, on March 18, the face-to-face price collection in the points of sale, due to the public health emergency caused by Covid-19. As of this date, prices began to be collected through other means, such as surveys on Internet sites, by phone or email.

INPC changes -0.25% in May

The National Consumer Price Index - INPC changed -0.25% in May, whereas it had registered -0.23% in April. This was the lowest result for May since the beginning of the Real Plan. The cumulative change over the year was 0.06% and, in the last 12 months, 2.05%, below the rate of 2.46% registered in the 12 immediately previous months. In May 2019, the rate had been 0.15%.

Food products rose 0.40% in May, whereas it had recorded 1.91% in April. The group of non-food products changed -0.44%, whereas it had registered -0.84% in the previous month.

Concerning the regional indexes, the metropolitan area of Campo Grande (-0.52%) posted the lowest index, due to the drop in gasoline (-6.04%). Conversely, the highest result was registered in the metropolitan area of Rio de Janeiro (-0.07%), influenced by the rises in meat (4.19%) and onions (35.63%).

Area Regional Weight (%) Change (%) Cumulative Change (%)
April May In the year 12 months
Campo Grande 1.73 -0.37 -0.52 0.23 2.53
Fortaleza 5.16 -0.04 -0.51 0.79 2.71
Curitiba 7.37 -1.21 -0.49 -1.52 0.89
Belo Horizonte 10.35 -0.20 -0.45 0.18 2.20
Aracaju 1.29 0.20 -0.35 1.16 1.96
Porto Alegre 7.15 -0.03 -0.31 -0.23 1.47
Salvador 7.92 -0.12 -0.30 0.34 1.75
Vitória 1.91 -0.18 -0.29 0.32 1.55
Brasília 1.97 -0.68 -0.28 -0.93 0.84
São Luís 3.47 -0.41 -0.23 -0.21 1.11
Rio Branco 0.72 -0.68 -0.21 -0.37 0.94
São Paulo 24.60 -0.32 -0.14 0.04 2.43
Belém 6.95 -0.17 -0.13 0.29 3.55
Recife 5.60 0.11 -0.13 1.18 2.08
Goiânia 4.43 -0.25 -0.12 -0.93 1.82
Rio de Janeiro 9.38 0.25 -0.07 0.38 1.77
Brasil 100.00 -0.23 -0.25 0.06 2.05

In order to measure the index of the month the prices collected from April 30 to May 28, 2020 (reference) were compared with the ones in effect from March 31 to April 29, 2020 (base). The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income of 1 to 5 minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.