Brazilian inflation preview falls to its lowest level since 2006


The cost of living in Brazil as measured by the Extended National Consumer Price Index-15 (IPCA-15), increased 0.21% this month, up 0.15% from March, but well below the 0.51% recorded in April 2016, according to the Brazilian Institute of Geography and Statistics (IBGE).

With the monthly result, the IPCA-15 print for the year to date is 1.22%, and in the 12-month measure, the rate of inflation is now 4.41%. This is the first time the measure is below the Central Bank’s target of 4.5% since January 2010 when the IPCA stood at 4.31%.

Higher food and health care expenses pushed up the IPCA-15. After a 0.08% drop in March, food and beverages increased 0.31%. Health and personal care expenses moved from 0.48% in March to an increase of 0.91%.

Together, the two groups added 0.18 percentage points to the index, almost all of the April IPCA-15. In the food group, tomato prices increased by 30.79% – the highest impact on inflation in the month. There were also other increases for consumers, such as potatoes (11.63%), eggs (5.50% ) and long-life milk (1.49%).

In April, the most intense falls were registered in the transport groups (-0.44%) and residential articles (-0.43%). In the first, the result was a drop in fuel prices (-2.77%) and, in the second, a decline in furniture prices (-0.71%).


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