By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – The Brazil IPCA (Consumer Price Index) rose by 0.71 percent in April, according to the IBGE (Brazilian Statistics Bureau) registering the lowest monthly rate this year. In March the IPCA registered an increase of 1.32 percent while in April of 2014 the rate had been increasing by 0.67 percent. The inflation rate now accumulates a combined rise of 4.56 percent in the first four months of the year, the highest for the period since 2003.
According to Eulina Nunes dos Santos, coordinator of the price index at the IBGE one of the main items to pressure inflation since the beginning of the year has been electricity.
“Electricity is responsible for one-fourth of the annual IPCA rate. In the [last] twelve months it has increased by 59.93 percent, which means it increased in the IPCA rate by 19.34 percent,” said the coordinator. According to the IBGE electricity rose by only 1.31 percent in April, after increasing by 22.08 percent in March.
According to the latest IPCA index, Health and Personal Care was the item which increased the most during April, by 1.32 percent, while the lowest growth was seen with transportation costs, which only rose by 0.11 percent.
The Food and Beverage segment increased by 0.97 percent, with tomatoes being the villain in the segment and registering an increase of more than 17.90 percent in prices in a single month.
In regards to inflation rates in Brazil’s largest metropolitan areas, Curitiba registered the greatest increase in the rate, with plus 1.46 percent, while the metropolitan area of Salvador registered the lowest, of 0.50 percent.