The General Market Price Index (IGP-M), calculated by the Brazilian Institute of Economics (FGV IBRE), varied 1.38% in May, compared to 0.57% in the previous month. With this result, the index accrues a 3.45% high in the year and 4.26% in 12 months. In May 2017, the index had fallen 0.93% and had accrued an increase of 1.57% in 12 months.

The Broad Producer Price Index (IPA) rose 0.71% in April, totaling 1.97% in May. In the analysis by processing stages, the rate of the Final Goods group varied 0.27% in May, compared to 0.50% in the previous month. The main contribution to this result came from the fresh foods subgroup, which varied from 2.50% to -6.43% over the same period. The Final Goods (ex) category, which excludes the fresh foods and fuels subgroups for consumption, rose 0.39% in May, compared to 0.08% in the previous month. 

The Intermediate Goods group rose from 1.16% in April to 2.60% in May. The main reason for this change was the fuel and lubricants for production subgroup, which leaped from 5.32% to 10.35%. The Intermediate Goods (ex) rate, excluding fuel and lubricants for production from the subgroup, rose 1.34% in May, compared to 0.52% in April.

The Gross Raw Materials category varied 3.32% in May. In April, the index had recorded an increase of 0.44%. The following items contributed to the increase in the group’s rate: iron ore (-9.53% to 10.97%), poultry (-4.37% to 1.77%) and coffee (beans) (-1.09% to 2.97%). The following items went in the opposite direction: corn (grain) (10.65% to 4.02%), sugar cane (0.15% to -3.05%) and orange (5.49% to -3.25%).

The Consumer Price Index (CPI) varied 0.26% in May, compared to 0.31% in April. Four out of eight expense classes that make up the index recorded decreasing variation rates. Transport was the main contributor (0.32% to -0.07%). Within this expense category, it is important to highlight the behavior of the ethanol item, which varied from 0.16% to -3.78%.

The Food (0.18% to 0.06%), Clothing (0.49% to -0.02%) and Education, Reading and Recreation (0.00% to -0.04%) groups showed decreasing variation rates. The following items were the main drivers behind this trend: fruit (4.82% to -2.58%), clothing (0.67% to 0.13%) and tours (-0.40% to -1.98%).

On the other hand, the Housing (0.33% to 0.54%), Communication (0.08% to 0.30%), Miscellaneous Expenses (-0.02% to 0.05%) and Health and Personal Care (0.85% to 0.90%) categories recorded increasing variation rates. In these classes, the following items recorded the greatest increases: household power bill (1.24% to 3.05%), fixed telephone and internet packages (0.46% to 0.93%), pet food (-1.21% to -0.14%) and hygiene and personal care items (0.56% to 0.82%).

The Civil Construction Index (INCC) rose 0.30% in May, compared to 0.28% in April. Prices for Materials, Equipment, and Services remained at 0.49%, compared to 0.40% in the previous month. The Manpower cost index rose 0.15%, compared to 0.18% in the previous month.

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