The Extended National Consumer Price Index (IPCA) of April was -0.31%,  whereas the rate recorded in March was 0.07%. That is the smallest monthly IPCA change since August 1998 (-0.51%). Cumulative IPCA in the year is 0.22% and, in the last twelve months, 2.40%, below the 3.30% observed in the previous 12 months. In April 2019, the rate stayed at 0.57%.

From the nine groups of products and services surveyed, six recorded deflation in April; the main negative impact in the month, 0.54 percentage points (p.p.) came from Transportation (-2.66%). The second most significant contribution (-0.05 p.p.) was that of Household articles (-1.37%), with a more significant increase than in March (-1.08%). Considering the increases, a highlight was Food and beverages (1.79%), which accelerated against March, with an impact of 0.35 p.p. on the IPCA of April. The other groups ranged between the decrease of 0.22% in Health and Personal care and the increase of 0.10% in Wearing apparel .

The decrease in Transportation (-2.66%) was mainly due to the fall in the  price of fuels (-9.59%), mainly of gasoline (-9.31%), which accounted for the main individual negative impact on the monthly index (-0.47 p.p.). The price of that fuel fell in the 16 areas surveyed, with thine biggest decrease in Curitiba (-13.92%), and the smallest in Rio de Janeiro (-5.13%). Besides gasoline, ethanol (-13.51%), diesel (-6.09%) and vehicle gas (-0.79%) also recorded decrease in April.

In Transportation, airfares (15.10%) recorded increases after having registered decreases for three consecutive months. The item urban bus (0.11%) also recorded a positive change, due to the price adjustment of 5% in fares in Salvador (1.56%), in effect since March 12.

The group Household articles (-1.37%) showed the second biggest negative change in the monthly index, influenced by the fall in furniture (-2.92%) and household appliances (-3.58%). In contrast, the items TV, sound and computer equipment (0.72%) and bed, bath and table linen (1.35%) recorded positive changes in the IPCA of April.

The main positive contribution  to the monthly index (0.35 p.p.) was that of Food and beverages (1.79%), which accelerated in relation to the result of last month (1.13%). Food at home changed from 1.40% in March to 2.24% in April, with a highlight to the hike of onion (34.83%), potato (22.81%), pinto beans (17.29%) and long-life milk (9.59%). Meat (-2.01%) showed a decrease for the fourth consecutive month, with a higher intensity than the previous one (-0.30%).

Food away from home, in turn, changed from 0.51% in March to 0.76% in April, influenced by the increase of snacks (3.07%). Meals recorded deflation (-0.13%) for the second consecutive month (a decrease of 0.10% in March).

After the increase of 0.13% in March, Housing recorded a fall of 0.10% in April, influenced by the retreat in the prices of electricity (-0.76%). It is worth mentioning that, in April, the green tariff flag, in which there is no additional charge on the electricity bill, remained active. The areas reported changes, from the 4.07% drop in Vitória to the 3.43% increase in Porto Alegre. The rise in Rio de Janeiro (1.33%) is due to the adjustments in two concessionaires, in effect since March 15.

Also in Housing, the positive change in the water and sewage rate (0.21%) results from the average adjustment of 6.23% in one of the concessionaires in Porto Alegre (1.94%), in effect since March 21. Some cleaning articles (0.10%) also recorded increases, with highlights to softener (1.82%), bleach (0.90%), detergent (0.81%) and sanitizer (0.59%).

Regionally, 14 of the 16 areas surveyed registered deflation in April. Curitiba accounted for the lowest index (-1.16%), due to the fall in the gasoline prices (-13.92%). On the other hand, Rio de Janeiro registered the biggest result (0.18%), due to the hike in airfare prices (15.83%) and electricity (1.33%).

The IPCA has been calculated by the IBGE since 1980, it refers to families with income of one to 40 minimum wages, whatever the source, and covers ten metropolitan areas of the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

For the calculation of the monthly index, prices collected from March 31 to April 29, 2020 (reference) were compared with those in force from March 3 to 30, (base). Due to the Covid-19 pandemic, IBGE suspended on-site collection of price data on March 18. Since then, prices have been collected by other means, such as search on websites, telephone or email. 

INPC changes by -0.23% in April

The National Consumer Price Index (IPCA) of April reported a change of -0.23%, while the rate recorded in March was 0.18%. It is the smallest result for April since the start of “Plano Real”. The cumulative index in the year was 0.31% and, in the previous 12 months, the index showed a high of 2.46%, below the 3.31% registered in the last 12 months. In April 2019, the index was 0.60%.

Food products had an increase of 1.91% in April, whereas the rate recorded in March was 1.12%. The group of non-food products reported a change of -0.84%, while the rate had been -0.09% in the previous month.

Regarding the regional index, Rio de Janeiro (0.25%) recorded the biggest figure, especially due to the increase in electricity (1.30%). In contrast, the lowest result was that of Curitiba (-1.21%), influenced by the drop in gasoline prices (-13.92%).

For the calculation of the monthly index, prices collected from March 31 to April 29, 2020 (reference) were compared with those in force from March 3 to 30, (base).

The INPC has been calculated by the IBGE since 1979. It refers to families with income of one to five minimum wages, with a salaried householder, and covers ten metropolitan areas of the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.