Inflation Hits 0.57 Percent in April Pressed by Adjustment in Medicine Prices

By Contributing Reporter

RIO DE JANEIRO, BRAZIL – Influenced by the rise in medicine prices, inflation in Brazil reached 0.57 percent in April, according to the Extended National Consumer Price Index – IPCA, released today by the IBGE.

As a result, the cumulative change in the year stayed at 2.09 percent and the change over the last 12 months, at 4.94 percent.

The rise of 2.25 percent in medicines reflected the annual adjustment, in force since March 31, which hit all the classes of these products, with a maximum of 4.33 percent. Considering the rises in the items personal hygiene (2.76 percent) and health insurance (0.80 percent), the group of Health and personal care registered the highest inflation this month (1.51 percent).

The group of Transportation recorded the second highest change in April´s IPCA (0.94 percent). The major impact came from gasoline, which stood, on average, 2.66 percent more expensive, becoming the major individual impact on the monthly index.

Airfare (5.32 percent) and urban bus (0.74 percent) also rose, as they were adjusted in Goiânia, Salvador, Porto Alegre, Recife, and Curitiba. This group was also influenced by the adjustment of 27.30 percent in the trains in Porto Alegre and of 6.98 percent in the subway in Rio de Janeiro.

On the other hand, the inflation of food and beverages decelerated from March (1.37 percent) to April (0.63 percent), mostly influenced by the drop in the prices of carioca beans (-9.09 percent) and fruits (-0.71 percent). Even so, some products still pressed, like tomatoes (28.64 percent), whole chicken (3.32 percent) and onion (8.62 percent).

In May, the inflation will be influenced by the increase of 3.43 percent in the price of bottled gas in the refineries, authorized by Petrobras and in force since May 5, as well by the initial charge of the yellow flag in the consumption of electricity, which adds R$1.00 per each 100 kW/h.