The Extended National Consumer Price Index 15 - IPCA-15 was 0.44% in May, standing 0.16 percentage points (p.p.) below the April´s rate (0.60%). That was the highest result for May since 2016 (0.86%). The cumulative index in the year stayed at 3.27% and, in the last 12 months, at 7.27%, above the rate of 6.17% recorded in the immediately previous 12 months. In May 2020, the rate had been -0.59%.

Eight out of nine groups of products and services surveyed rose in May. The major impact (0.16 p.p.) came from Health and personal care (1.23%), which accelerated over April (0.44%). The groups of Housing (0.79%) and Food and beverages (0.48%) also registered changes above those in April (0.45% and 0.36%, respectively), jointly contributing with more 0.22 p.p. to the May´s index. The biggest change came from Wearing apparel (1.42%) and the smallest one, from Transportation (-0.23%), the only group that declined in May. The other groups varied between 0.03% in Communication and 0.89% in Household articles.

The result of Health and personal care (1.23%) was influenced by the rise in the prices of pharmaceuticals (2.98%), with the adjustment of 10.08% in the medicines since April 1st, highlighted by anti-allergic medicines and bronchodilators (5.16%), dermatological medicines (4.63%), anti-infectives and antibiotics (4.43%) and hormonal medicines (4.22%).

In Housing (0.79%), the rise in electricity (2.31%) exerted the biggest individual impact on the month´s index (0.10 p.p.). In May, the red tariff flag level 1 came into force, adding R$4.169 to the electricity fare at each 100 kilowatt-hour consumed, after four consecutive months of the yellow flag, which adds only R$1.343. In addition, electricity fares increased in Fortaleza (8.27%) and Salvador (5.83%), where the adjustments were of 7.74% and 7.47%, respectively, as well as in Recife (5.40%), with an adjustment of 7.86%.

Still in Housing, bottled gas (1.45%) rose for the 12th consecutive month, though less than in April (2.49%). The rise of 2.03% in piped gas was due to the adjustments of 13% in Rio de Janeiro (5.64%) and of 7.04% in Curitiba (3.04%). The positive change in water and sewage fees (0.29%) came from the adjustment of 7.10% in the fare in São Paulo (0.94%).

The acceleration in the group of Food and beverages (0.48%) was mainly due to food at home, which changed from 0.19% in April to 0.50% in May. Among the highest rises, the highlights were meat (1.77%), which accrued a rise of 35.68% in the last 12 months and tomatoes (7.24%), which had declined 3.48% in the previous month. On the dropping side, the most intense negative impact (-0.06 p.p.) came from fruits (-6.45%).

In food away from home (0.43%), both snacks (0.72%) and meals (0.16%) decelerated over April, when they had increased 1.34% and 0.57%, respectively.

In May, the highest rise among the nine groups came from Wearing apparel (1.42%), which contributed with an impact of 0.06 p.p. to the final result. All the items surveyed rose in May, highlighted by jewels (2.35%) and women’s wearing apparel (2.00%).

The deflation in the group of Transportation (-0.23%) was the result of the drop of 28.85% in the prices of airfare, which retreated in all the areas surveyed: from -10.90% in Belém to -37.10% in Brasília. In addition, the prices of transportation through apps (-9.11%) and voluntary insurance of vehicles (-3.18%) also retreated.

The biggest positive impact (0.03 p.p.) in Transportation came from new cars (1.16%), followed by car repair (1.05%) and gasoline (0.29%), which accrued a rise of 41.55% in the last 12 months. The sub-items subway (0.46%) and urban bus (0.25%) also rose. In the first case, due to the adjustment of 16% in airfare in Rio de Janeiro (1.60%) and, in the second, due to the adjustment of 4.76% in Salvador (2.86%).

Concerning the regional indexes, the only area with negative change was Brasília (-0.18%), with the drop in the prices of airfare (-37.10%), gasoline (-1.42%) and fruits (-10.03%). The highest index was recorded in Fortaleza (1.08%), due to the rises in electricity (8.27%) and pharmaceuticals (3.51%).

In order to estimate the IPCA-15, the prices collected from April 14 to May 13, 2021 (reference) were compared with the ones in force from March 16 to April 13, 2021 (base).  The indicator refers to households with monthly income of 1 to 40 minimum wages and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, as well as Brasília and Goiânia. The methodology is the same as the one used for the IPCA; the difference lies in the period of price collection and in the geographic coverage.