Brazil’s May Inflation Rises to 0.44%, Below Forecasts
In May, Brazil’s National Consumer Price Index (IPCA-15) increased by 0.44%, up from April’s 0.21%.
Despite the rise, this figure missed market analysts’ prediction of 0.47%.
Interestingly, this is the lowest May inflation rate since 2021, which also saw a 0.44% increase.
In comparison, last year’s May rate was higher at 0.51%. This year, the IPCA-15 has climbed by 2.12%.
Over the past twelve months, it recorded a 3.7% increase, slightly down from 3.77% in April.
The IBGE reported that eight out of nine groups of goods and services saw positive results in May.
Notably, Health and Personal Care rose by 1.07%, contributing 0.14 percentage points, and Transportation grew by 0.77%, adding 0.16 points.
Other variations ranged from a decrease of 0.44% in Household Items to a 0.66% increase in Clothing.
In Health and Personal Care, pharmaceutical products had the biggest impact, rising 2.06%.
This increase followed a price hike of up to 4.5% for medications, effective from March 31.
Additionally, personal hygiene items accelerated from 0.29% in April to 0.87% in May, mainly due to a 1.98% rise in perfume prices.
May Inflation Rises to 0.44%, Below Forecasts
In the Transportation sector, gasoline prices went up by 1.9%, and airline tickets soared by 6.04%.
Ethanol rose by 4.70%, diesel by 0.37%, while vehicular gas prices fell by 0.11%.
In the Food and Beverages group, at-home food costs rose by 0.22% in May.
Contributing to this were price hikes in onions (up 16.05%), ground coffee (up 2.78%), and long-life milk (up 1.94%).
However, carioca beans dropped by 5.36%, fruit prices fell by 1.89%, rice by 1.25%, and meat by 0.72%.
Background
On the other hand, Brazil’s Producer Price Index (IPP) experienced a notable rise of 0.74% in April.
This marked the third consecutive month of gains, signaling subtle yet significant shifts in the country’s industrial landscape.
Despite a previous year’s overall decline of 3.08%, April’s increase of wholesale inflation contributed to a modest annual growth of 0.99%.
Brazil’s Producer Price Index (IPP) tracks price changes received by domestic producers, reflecting wholesale inflation.
Sector performances varied. The paper and cellulose industry led with a surge of 3.99%, while pharmaceuticals also rose by 2.10%.
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Brazil — Live Market Board
-1.50%
203,399.52
-1.50%
66,790.35
-0.26%
10,972.92
+0.06%
2,813,491
-0.79%
2,576.10
-0.24%
59,543.73
-0.58%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 203,399.52 | -1.50% | +21.85% | 206,505.98 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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