The Extended National Consumer Price Index 15 (IPCA-15) was 0.59% in May, 1.14 percentage points (p.p.) below the April´s rate (1.73%). That was the highest change for May since 2016, when the index had been 0.86%. The cumulative change over the year was 4.93% and, in 12 months, 12.20%, above the rate of 12.03% recorded in the 12 immediately previous months. This was the highest cumulative change in 12 months since November 2003, when it had been 12.69%. In May 2021, the rate had been 0.44%.

Eight out of nine groups of products and services surveyed rose in May. The exception was Housing (-3.85%). The highest rise came from Health and personal care (2.19%), which contributed with 0.27 p.p. to the month´s index. The biggest positive impact (0.40 p.p.) came from Transportation (1.80%), which decelerated in relation to April (3.43%), as happened with Food and beverages (1.52% in May against 2.25% in the previous month). The other changes ranged between 0.06% in Education and 1.86% in Wearing apparel.

Among the items and sub-items that mostly impacted on the month´s index, the highlights were: pharmaceuticals (5.24%), with 0.17 p.p., personal hygiene (3.03%), with 0.11 p.p.; airfare (18.40%), with 0.09 p.p.; gasoline (1.24%), with 0.08 p.p.; and ethanol (7.79%), with 0.07 p.p.

The drop in group of Housing (-3.85%) was leveraged by electricity (-14.09%), which impacted -0.69 p.p. on the May´s IPCA-15. As of April 16, the green tariff flag came into force, imposing no additional charge in the electricity fare. The “water scarcity” tariff flag has been in effect since September 2021, adding R$14.20 to the electricity bill per 100 kWh consumed. The changes in the areas varied from -17.62% in Curitiba to -2.18% in Fortaleza, where the fare was adjusted by 24.23% since April 22. On the same date, a tariff adjustment of 20.97% was applied in Salvador (-4.82%) and, on April 29, an adjustment of 18.77% was applied in Recife (-8.20%).

Still in Housing, piped gas increased 0.81%, as a result of the adjustment of 5.95% applied in Rio de Janeiro (2.58%), in force since May 1st. Water and sewage fees (0.55%) also rose, due to the adjustment of 12.89% in São Paulo (1.72%), in force since May 10.

The result of the group of Health and personal care (2.19%) was influenced by the rise in the prices of pharmaceuticals (5.24%), following the adjustment of 10.89% authorized by the Drug Market Regulation Chamber (CMED). In addition, the items of personal hygiene rose 3.03%, impacting 0.11 p.p. on the the May´s IPCA-15.

In Transportation, the major contribution (0.09 p.p.) came from airfare (18.40%), whose prices increased for the second consecutive month (in April, the rise was of 9.43%). Fuels (2.05%) also remained rising, though the change has been lower than that recorded in the previous month (7.54%). Gasoline, in particular, rose 1.24%, whereas ethanol rose 7.79%. Having accumulated a change of 18.24% in the year, vehicle insurance (3.48%) also stood out.

Still in Transportation, the positive change in the sub-item taxi (5.94%) should be mentioned, due to the adjustments of 41.51% in the fare in São Paulo (20.15%), in force since April 2, and of 14.10% in Fortaleza (12.95%), in force since April 12. In Rio de Janeiro, the subway fare was adjusted by 12.07%, with the new value valid since April 2. As a result, the national result of the sub-item subway stayed at 2.17% and that of the metropolitan area of Rio de Janeiro, at 6.56%. The sub-item urban bus (0.17%) was adjusted by 11.11% in Belém (4.17%), in force since March 28.

In the group of Food and beverages (1.52%), the biggest influence came from food for consumption at home (1.71%). Among the items that rose the most, long-life milk (7.99%) and potatoes (16.78%)stood out, impacting 0.06 p.p. and 0.04 p.p., respectively. In addition, other important food in the consumption basket of Brazilians also rose, like onions (14.87%) and French bread (3.84%). On the dropping side, the prices of fruits (-2.47%), tomatoes (-11%) and carrots (-16.19%) reduced. The last one had risen significantly in April (15.02%).

Food away from home accelerated between April (0.28%) and May (1.02%). It was mainly due to snacks, which rose 1.89% against the change of 0.07% in the previous month. Meals (0.52%), in turn, showed a result closer to that registered in April (0.45%).

Lastly, the rise in Communication (0.50%) stood out, due to adjustments in a number of services, like pay TV (4.00%), mobile telephony (0.36%) and mailing (2.41%).

Concerning the regions, all the areas surveyed rose in May. The highest change occurred in Fortaleza (1.29%), especially due to the items of personal hygiene (3.59%) and to the adjustment of 24.23% in the electricity fare (-2.18%), which caused a lower reduction in the sub-item than that noticed in other areas. The lowest regional result was recorded in Curitiba (0.12%), where the retreat of nearly 18% in electricity (-17.62%) was followed by the drop in the prices of food, like carrots (-19.88%) and tomatoes (-13.72%).

In order to estimate the IPCA-15, prices were collected from April 14 to May 13, 2022 (reference) and compared with those in effect from March 17 to April 13, 2022 (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, besides Brasília and the municipality of 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.