The Extended National Consumer Price Index (IPCA) was 0.83% in May, 0.52 percentage points (p.p.) above the April´s rate (0.31%). It was the highest figure for May since 1996 (1.22%). The cumulative index in the year stayed at 3.22% and, in the last 12 months, at 8.06%, above the rate of 6.76% registered in the 12 immediately previous months. The rate had been -0.38% in May 2020.

The nine groups of products and services surveyed rose in May. The biggest impact (0.28 p.p.) and the highest change (1.78%) came from Housing, which accelerated over April (0.22%). The second biggest contribution (0.24 p.p.) came from Transportation, whose prices rose 1.15% in May, after retreating 0.08% in April. It was followed by Health and personal care (0.76%) and Food and beverages (0.44%), with impacts of 0.10 p.p. and 0.09 p.p., respectively. Household articles (1.25%) recorded the second highest change this month. The other groups varied from 0.06% (Education) to 0.92% (Wearing apparel).

The rise in the group of Housing (1.78%) was mainly due to the result of electricity (5.37%), the biggest individual impact on the month´s index (0.23 p.p.). In May, the red tariff flag level 1 came into force, adding R$4.169 to the fare at each 100 kilowatt-hour consumed. It is worth reminding that the yellow tariff flag, which adds only R$1.343, was in force between January and April. In addition, adjustments took place in the end of April in a number of regions included in the index.

The rise in water and sewage fees (1.61%) stood out in Housing, as a consequence of the adjustments of 7.10% in São Paulo (4.56%), in force since May 10, and of 5.78% in Curitiba (2.27%), since May 17. The prices of bottled gas (1.24%) and piped gas (4.58%) also rose. The adjustments of 13% in Rio de Janeiro (12.56%) and of 7.04% in Curitiba (6.78%), both of them in force since May 1st, influenced in piped gas.

In Transportation (1.15%), the biggest impact (0.17 p.p.) came from gasoline (2.87%), whose prices had retreated in April (-0.44%). That fuel accrued a rise of 24.70% in the year and of 45.80% in 12 months. The prices of vehicular gas (23.75%), ethanol (12.92%) and diesel fuel (4.61%) also increased in May.

Still in Transportation, new (1.15%) and used cars (0.88%) continued to rise, as well as some related products and services: tire (2.30%) and car repair (1.19%). In public transportation (-3.98%), metro fare (2.86%) was adjusted in Rio de Janeiro (9.80%) - an increase of 16%, valid since May 11 - and urban bus (0.30%) in Salvador (4.02%), an increase of 4.76% since April 26. On the other hand, airfare dropped (-28.33%), with an impact of -0.12 p.p. this month.

The biggest contribution (0.05 p.p.) in the group of Health and personal care (0.76%) came from pharmaceuticals (1.47%), though the change has been lower than in April (2.69%). It should be reminded that, from April 1st onwards, an adjustment of up to 10.08% in the prices of medicines was authorized, depending on the therapeutic class and profile of the competition. It was followed by health plan (0.67%) and the items of personal hygiene (0.63%), with impacts of 0.03 p.p. and 0.02 p.p., respectively.

The result of Food and beverages (0.44%) stood close to that in the previous month (0.40%). Food at home changed from 0.47% in April to 0.23% in May, mainly due to fruits (-8.39%), onions (-7.22%) and rice (-1.14%). In contrast, meat (2.24%) continued to increase, accruing a rise of 38% over the last 12 months.

Food away from home (0.98%) followed a reverse movement, accelerating in relation to April (0.23%). The rises in snacks (2.10%) and meals (0.63%), whose changes had been -0.04% and 0.30% in the previous month, respectively, contributed to that.

The group of Household articles (1.25%) registered the second highest change and contributed with 0.05 p.p. to the May´s IPCA. The rises in the items TV, sound system and computers (2.16%), which had risen in April (0.63%), and household articles and equipment (1.04%), which had retreated 0.30% in the previous month, stood out.

All the areas surveyed recorded a positive change in May. The highest index was in the metropolitan area of Salvador (1.12%), influenced by the rise in the prices of gasoline (8.43%) and electricity (10.54%). The lowest result was reported in Brasília (0.27%), due to the drop in the prices of airfare (-37.10%) and fruits (-10.68%).

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 IPCA, prices were collected from April 30 to May 27, 2021 (reference) and compared with those in effect from March 30 to April 29, 2021 (base). Due to the Covid-19 pandemic, the IBGE suspended the face-to-face price collection on March 18, 2020. As of this date, prices began to be collected through other means, such as surveys on Internet sites, by phone or email.

INPC rises 0.96% in May

The National Consumer Price Index - INPC was 0.96% in May, 0.58 p.p. above the April´s figure (0.38%). That was the highest change for May since 2016, when the index had been 0.98%. The cumulative index in the year stayed at 3.33% and, in the last 12 months, at 8.90%, above the rate of 7.59% registered in the 12 immediately previous months. The rate had been -0.25% in May 2020.

Food products increased 0.53% in May, standing above the April´s figure (0.49%). Non-food products rose 1.10%, against 0.35% in April.

All the areas surveyed posted a positive change this month. The lowest index was registered in Brasília (0.41%), due to the drop in the prices of airfare (-37.10%) and fruits (-11.36%). The highest change took place in Salvador (1.25%), due to the rise in the prices of electricity (10.63%) and gasoline (8.43%).

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. In order to estimate the IPCA, prices were collected from April 30 to May 27, 2021 (reference) and compared with those in effect from March 30 to April 29, 2021 (base).