The Extended National Consumer Price Index - IPCA was 0.31% in April, standing 0.62 percentage points (p.p.) below the March´s rate (0.93%). In the year, the index accrued a rise of 2.37% and, in 12 months, of 6.76%, above the rate of 6.10% registered in the 12 immediately previous months. The change had been -0.31% in April 2020.

Eight out of nine groups of products and services surveyed rose their prices in April. The biggest impact (0.16 p.p.) and the highest change (1.19%) came from Health and personal care, which had slightly retreated in March (-0.02%). The second biggest contribution (0.09 p.p.) came from Food and beverages (0.40%), accelerating in relation to the previous month (0.13%).

The group of Housing followed a reverse movement, changing from 0.81% in March to 0.22% in April. The only drop reported this month came from Transportation (-0.08%), after the rises of 2.28% and 3.81% in February and March, respectively. The other groups stood between the rate of 0.01% of Personal expenses and the rate of 0.57% of Household articles.

The rise in the group of Health and personal care (1.19%) was mainly influenced by the result of pharmaceuticals (2.69%), which contributed with 0.09 p.p. to the overall index. On April 1st, and adjustment of 10.08% was authorized in the price of medicines, depending on the therapeutic class. The highest change in that item came from anti-infective and antibiotic medicines (5.20%). In addition, personal hygiene products also rose (0.99%), with an impact of 0.04 p.p.

In the group of Food and beverages, the rise of 0.40% in April over March (0.13%) was explained by food at home (0.47%), which had retreated (-0.17%) in the previous month. The biggest contribution (0.03 p.p.) came from meat (1.01%), which accrued a rise of 35.03% in the last 12 months. It was followed by long-life milk (2.40%), chicken pieces (1.95%) and tomatoes (5.46%). On the dropping side, fruits (-5.21%) stood out, contributing with -0.05 p.p. to the month´s index.

Food away from home (0.23%), in turn, registered a change below that in the previous month (0.89%), especially due to snacks, which changed from a rise of 1.88% in March to a drop of 0.04% in April.

The deceleration in the group of Housing (0.22%) was mainly related to the less intense rise of bottled gas (1.15%) over March (4.98%) and to the retreat in the prices of electricity (-0.04%), which had risen 0.76% in the previous month. The yellow tariff flag was maintained in April, adding R$1.343 to the fare at each 100 kilowatt-hour consumed. While the price decreased in some areas like São Paulo (-1.22%) and Porto Alegre (-1.38%), due to the decrease in PIS/COFINS, others like Rio de Janeiro (3.63%) and Fortaleza (3.32%) rose. Rio de Janeiro recorded adjustments of 4.66% and 4.50% in the concessionaires surveyed, in force since March 15. The other adjustments were applied in April.

The negative changes in Campo Grande (-0.82%) and Recife (-0.54%) were due to  reductions in the taxes. In Recife, the adjustment came into force on the last day of the reference period of the survey.

The retreat in Transportation (-0.08%) was influenced by fuels (-0.94%). The prices of gasoline (-0.44%) dropped for the first time, after 10 consecutive months of rises. However, the most intense retreat came from ethanol (-4.93%), which contributed with -0.04 p.p. to the April´s figure. Besides new cars (1.01%) and used cars (0.57%), airfare (6.41%) stood out on the rising side, posting the first price rise in the year.

Still in Transportation, the change of 0.05% in urban bus was due to the adjustment of 4.76% in the price of the fare in Salvador (0.71%), in force since April 26.

All the 16 areas surveyed registered a positive change. The highest figure came from the municipality of Rio Branco (0.96%), mainly due to pharmaceuticals (4.50%). The lowest figure was reported in Brasília (0.05%), especially due to the drop in the price of gasoline (-1.47%).

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 March 30 to April 29 2021 (reference) were compared with the ones from March 2 to March 29 2021 (base). It is worth reminding that the IBGE suspended the face-to-face price collection on March 18, 2020, due to the COVID-19 pandemic. As of this date, prices began to be collected through other means, such as surveys on Internet sites, by phone or email.

INPC rises 0.38% in April

The National Consumer Price Index - INPC recorded a change of 0.38% in April, 0.48 p.p. below the figure of March (0.86%). The cumulative change over the year was 2.35% and, in the last 12 months, 7.59%, above the rate of 6.94% recorded in the 12 immediately previous months. In April 2020, the rate had been -0.23%.

Food products rose 0.49% in April against 0.07% in March. Non-food products rose 0.35% in April against 1.11% in March.

All the areas investigated registered a positive change this month. The lowest index was reported in Brasília (0.11%), mainly due to the drops in gasoline (-1.47%) and fruits (-7.10%). The highest index was recorded in Rio Branco (1.06%), due to the rises in gasoline (1.95%) and pharmaceuticals (4.66%).

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 March 30 to April 29 2021 (reference) were compared with the ones from March 2 to March 29 2021 (base).