Wednesday, June 10, 2020

Prices fall 0.38% in May

Inflation as measured by the IPCA (Broad National Consumer Price Index) closed in May at -0.38%. This is the largest monthly drop in average prices since August 1998 (-0.51%). By May 2019, the rate had stood at 0.13%. In the year, the IPCA registered -0.16%. In the last twelve months, the rate is 1.88%
With this, inflation is below the government's target for this year, which is 4%, with a margin of 1.5 percentage points for more or less, that is, ranging from 2.5% to 5.5%. The data were released today by IBGE (Brazilian Institute of Geography and Statistics).
Again the index was pulled down because of the drop in fuel prices (-4.56%). Gasoline was the item that had the highest weight (-0.2 percentage point), with a devaluation of 4.35% last month. Ethanol followed the same movement, with a -5.96% change in May, while diesel oil fell 6.44%.
Airfares fell 27.14%, contributing -0.16 point in the Ipca in May.
The articles of residence had an average increase in prices of 0.58%, with the highest positive variation in May. The discharge was influenced by TV, sound and computer articles (4.57%). Prices of appliances and equipment (1.98%) also rose, while furniture items fell 3.17%.
The items considered in house prices registered a drop of -0.25%. The largest negative contribution came from electricity (-0.58%). In May, the National Electric Energy Agency (ANEEL) decided to keep the green tariff flag, in which there is no additional charge on the electricity bill, until the end of 2020.
UOL - 10/06/2020 News Item translated automatically
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