The Extended National Consumer Price Index (IPCA) changed by 0.13%, being 0.44 percentage points (p.p.) below the April rate (0.57%). That was the lowest result for a month of May since 2006 (0.10%). The cumulative change in the year was 2.22% and the cumulative index in 12 months was 4.66%, below the rate of 4.94% recorded in the previous 12 months. In May 2018, the rate was 0.40%.

Among the nine groups of products and services surveyed, four recorded decreases in May.  The most significant negative impact (-0.14 percentage points) over the IPCA of May came from Food and beverages (-0.56%), which had increased 0.63% in April. In terms of incresing rates, the highlights were Housing (0.98%), with an impact of 0.15 percentage points, and Health and personal care (0.59%), with an impact of 0.07 percentage points. The other groups ranged between a decrease of 0.10% in Household articles and an increase of 0.34% in Wearing apparel, as shown in the table below: 

IPCA - Change and Impact by Group - Monthly results

 The result of the group Food and beverages (-0.56%) was mainly due to the decrease of 0.89% recorded in Food at home. Tomato, after an increase of 28.64% in April, fell by 15.08% and pinto beans, with a bigger decrease from the previous to the current month, fell from -9.09% to -13.04%).  Fruits (-2.87%) also fell more significantly than in April (-0.71%). On the other hand, long-life milk (2.37%) and carrots (15.74%) also rose in May, after recording decreases (-0.30% and -0.07% respectively), in April. 

Housing (0.98%), on the other hand, recorded the biggest positive impact in a month of May (0.15 percentage points), mainly due to the hike of 2.18% in the item electricity.

All the areas surveyed recorded positive changes, ranging between 0.23% in the metropolitan area of Rio de Janeiro and 7.32% in the metropolitan area of Fortaleza.  

The green tariff flag was in force between December 2018 and April 2019, a period during which there was no extra charge in electricity bills. In May, the yellow tariff flag was implemented, leading to an additional charge of R$ 0.01 for each kwh per hour consumed.  In addition to that, several price adjustments have been added, as shown in the table below:  

IPCA - Electricity adjustments

* In Rio de Janeiro, there was, at first, an adjustment of 11.53% and 9.72% in concessionaires, on March 15,
which was reduced to 8.80% and 7.30%, respectively, on April 01.

Also considering Housing, the change of 0.82% in the water and sewage rate reflects the price adjustments of 4.72% in the metropolitan area of São Paulo (3.15%), starting on May 11, and of 2.99% in Brasília (0.18%), in effect since April 1st. The fall of piped gas (-0.84%), in turn, resulted from the average decrease of 1.40% in the residential charges in the metropolitan area of Rio de Janeiro (-1.57%), since May 1st.

Bottled gas, also from the group Housing, recorded a hike of 1.35%, due to the average adjustment of 3.43%, granted by Petrobras, in refineries, starting on May 5th. 

The second biggest change came from Health and personal care (0.59%), which also accounted for the second major impact in the month (0.07 percentage points). The rpices of this group decelerated in relation to those of April (1.51%), mainly due to medicines, which changed from 2.25% in April to 0.82% in May, and of perfumes, which changed from a hike of 6.56% in April to a decrease of 1.61% in May.

In the group Transportation (0.07%), the highlight was gasoline (2.60%), which recorded the main individual impact on the IPCA of May, with 0.11 percentage points. In all the areas surveyed, there was an increase in the price of that fuel, ranging between 0.50%, in the metropolitan area of Porto Alegre and 7.17%, in the municipality of Goiânia. On the other hand, airfares, which had rose in April (5.32%), recorded a decrease of 21.82% in May, thus contributing with the main negative impact on the monthly index (-0.10 p.p.).

Also in Transportation, the hike of intercity buses (0.45%) considers the average adjustment of 10.00% in the fares of the metropolitan area of Fortaleza (1.78%), from May 25 on, and the adjustments between 3.30% and 7.50% in the fares of the metropolitan area of Salvador (3.39%), in effect since May 6. The result of the item urban buses (0.18%) reflects the adjustment of 7.50% observed in the municipality of Goiânia (4.62%), in effect since April 19, and an increase of 8.11% in Salvador (0,75%), in effect since April 2nd. With respect to the subway, the change of 0.17% is a consequence of the adjustment observed in the fares of Rio de Janeiro (0.66%), which rose 6.98% on April 2nd. 

As for regional indexes, the municipality of Rio Branco (0.67%)  recorded the biggest change, ude to the hike observed in electricity (3.18%). The lowest indexes were those of Brasília and of the metropolitan area of Rio de Janeiro, both with -0.05%. In the two cases, the result was influenced dy the fall of airfare prices (-12.74% and -25.43%, respectively).

IPCA - Change by areas - monthly and cumulative in 12 months

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 measure the index of the month the prices collected from May 01 to May 29, 2019 (reference) were compared with the ones from March 30 to April 30, 2019 (base).

INPC stays at 0.15% in May

The National Consumer Price Index (INPC) of May changed by 0.15%, 0.45 percentage points below the April rate (0.60%). That was the lowest result for a month of May since 2006, when the rate was 0.13%. The cumulative change in the year was 2.44%, and the cumulative index in the year, 4.78%, below what was recorded in the 12 previous months (5.07%). In May 2018, the rate was 0.43%.

Food products recored a decrease of 0.59% in May, versus 0.64% in April. The group of non-food products decelerated to 0.48%, whereas, in April, it had recorded 0.58%.

As for regional indexes, the municipality of Rio Branco (0.67%) recorded the biggest change, due to the item electricity (2.90%), as shown in the table below. The lowest index was that of the metropolitan area of Curitiba (-0.01%), influenced by the fall of prices of tomato (-16.65%) and fruits (-8.44%).

INPC - Change by areas - monhly and cumulative in 12 months

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 measure the index of the month the prices collected from May 01 to May 29, 2019 (reference) were compared with the ones from March 30 to April 30, 2019 (base).