By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – The National Consumer Price Index (IPCA) in Brazil rose by 0.14 percent in April, according to the IBGE (Brazilian Statistics Bureau). This is far lower than the 0.25 percent registered in March 2017 and for the twelve months ending in April inflation rate was 4.08 percent, the lowest twelve-month inflation rate since July 2007.
With this latest inflation result, says the IBGE, the accumulated inflation for the first four months of the year is at 1.10 percent, well below the 3.25 percent registered for the first four months of 2016.
The two categories, which pressured inflation downward in April, were electric energy and fuel whose prices fell 6.39 percent and 1.95 percent respectively.
The decline in electric energy prices led to a reduction in housing expenses -1.09 percent, while the decrease in fuel prices was felt in the transportation sector, which registered a small, overall decline of 0.06 percent.
The decline in the transportation sector was not greater due to the increase by 15.48 percent in air travel and 0.69 percent in urban bus transportation.
The sector that registered the highest inflation rate in April health care and personal expenses, with an increase of one percent due to the increase in prescription drug prices (+1.95 percent).
The food and beverage sector registered an inflation of 0.58 percent with the prices of tomatoes and potatoes pushing inflation up with increases of 29.02 percent and 20.81 percent respectively.
With regards to inflation rates in Brazil’s largest metropolitan areas, Brasilia registered the greatest increase in inflation rates, rising by 0.54 percent while the metropolitan area of Salvador registered a deflation of -0.22 percent.