Food prices decrease and inflation decelerates in Brazil in May, according to IBRE

The General Price Index - Market (IGP-M) calculated by the Brazilian Institute of Economics (FGV/IBRE) decelerated in the second ten-day period of May, and recorded a -0.04% change. In the same collection period of April, the change was 0.83%.
Institucional
19 Maio 2014

The General Price Index - Market (IGP-M) calculated by the Brazilian Institute of Economics (FGV/IBRE) decelerated in the second ten-day period of May, and recorded a -0.04% change. In the same collection period of April, the change was 0.83%.The largest contribution to the decrease came from the Broad Producer Price Index (IPA) - whose weight corresponds to 60% in the IGP's composition. The index recorded a -0.45% change in the second ten-day period of May and in the same period of the previous month the rate was 0.91%. The change rate of Finished Goods decreased from 2.25% to -0.21%, thanks mainly to the deceleration in the subgroup fresh food, whose rate went from 10.97% to -0.84%.The Consumer Price Index (IPC) also decelerated and recorded a 0.66% change, compared to 0.76%, during the same period in April. Four of the eight classes of expenditure of the index recorded a decrease in their change rates and the main highlight came from the Food group (1.44% to 0.63%). In this expenditure category, it is worth pointing out the behavior of the greens and vegetables item, whose rate increased from 7.74% to 0.98%.The National Construction Cost Index (INCC) accelerated and recorded a 1.06% change compared to 0.47% in the second ten-day period of last month.  The index for Materials, Equipment and Services recorded a 0.46% change. The index that represents the cost of labor recorded a 1.61% change; in the previous month, this index had changed 0.22%.The second ten-day period of the IGP-M corresponds to the interval between the 21st day of the previous month and the 10th of the reference month.Please click here to learn more about this IGP-M publication (in Portuguese). 

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