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See which were the bad guys and good guys of inflation in May

The Broad National Consumer Price Index (IPCA) slowed to 0.47% in May, after having advanced 1.06% in April. The indicator came out below market expectations, but experts consider that inflation remains high.

The clothing group had the greatest variation, with an increase of 2.11% and a contribution of 0.09 percentage points. The biggest contribution came from transport, which decelerated from 1.91% in April to 1.34% in May, and contributed 0.30 pp to the index.

Health and personal care was the second group with the greatest impact for the indicator, presenting 0.12 percentage points in the final index, a variation of 1.01%.

Another group that had a significant contribution was food and beverages, which decelerated considerably in May, to 0.48% compared to a high of 2.06% in April, but still represented 0.10 percentage point in the month’s inflation.

The deceleration of this group came from food at home, which changed from 2.59% in April to 0.43% in May. Among the most significant drops in this segment, the IBGE highlights tomato (-23.72%), carrots (-24.07%) and potato (-3.94%). The research manager cites the seasonal factor as an important influence on this one of the falls.

The only drop between the groups came from housing, which registered a negative impact of 0.26% percentage point.

Most expensive clothes and shoes

The rise in the clothing group was due to the increase in the prices of men’s clothing (2.65%), women’s clothing (2.18%) and children’s clothing (2.14%) — all of which rose over 2%.

Footwear and accessories also had a significant increase in May, according to the IBGE, with a variation of 2.06%. The only exception in the group were jewelry and costume jewelry, whose prices dropped 0.34%.

Airfares pull fuel

Airline tickets were the main highlight of inflation in the transport group, with an increase of 18.33%. They constituted the biggest individual impact on the IPCA in May, of 0.08 percentage point, together with pharmaceutical products, belonging to the group of health and personal care.

Inflation in airline tickets had already been strongly felt in April, when they registered a high of 9.48%, according to IBGE data.

Gasoline and ethanol cool

Although fuel prices are still much higher than a year ago, the category slowed to 1% in May, compared to 3.20% in the previous month.

Gasoline went from 2.48% in April to 0.92% in May, while ethanol went from an increase of 8.44% to a drop of 0.43%.

The IBGE also highlights the variations in ticket prices for the urban bus (0.06%) and taxi (0.72%) sub-items. The first is a consequence of the 12.5% ​​readjustment in the price of tickets in Aracaju (5.75%), in force since May 15th.

The second stems from the readjustments of 41.51% in tariffs in São Paulo (1.99%), in force since April 2nd, and of 14.10% in Fortaleza (5.20%), applied from April 12th. April.

There were also readjustments in intercity buses (1.19%) in three areas: Belo Horizonte (6.88%): readjustments of up to 17% in tickets, since May 16; Aracaju (6.25%), with readjustments of up to 12.5% ​​in tickets, since May 15; and Porto Alegre (5.39%), which had a 7.33% readjustment in tickets, since April 14th.

Electricity in decline

The main responsible for the drop in the housing group was electricity. This is the second consecutive month that the item has declined, this time by 7.95%. With the end of the water scarcity flag on May 16, consumers stopped paying R$ 14.20 for every 100 kWh consumed.

The variations in electric energy in the areas ranged from a drop of 13.49% in Brasília (where there was a reduction in PIS/COFINS) to a rise of 6.97% in Fortaleza, due to the 24.23% readjustment in residential tariffs, the from the 22nd of April.

Other Brazilian capitals also registered tariff adjustments in their electricity bills. They are: Recife: (3.27%), with a readjustment of 18.77%, in force since April 29; Salvador (2.56%): readjustment of 20.97%, in effect since April 22; Aracaju (0.79%): readjustment of 16.81%, as of April 22; and Campo Grande (-1.63%): readjustment of 17.14%, as of April 16th.

Other highlights

The decline in gas cylinder prices of 1.02%, after a rise in April of 3.32%, was an important highlight of the month. The water and sewage rate increased by 2.73%. The latter reflects the readjustments of 12.89% in São Paulo (8.29%), in force since May 10, and of 4.99% in Curitiba (1.97%), since May 17.

In the health and personal care group, which changed 1.01%, the result was influenced by the 2.51% rise in pharmaceuticals – the highest positive individual impact in the May index (0.08 pp) together with airline tickets.

The health plans continue to fall, after presenting a negative change of -0.69% in May. However, the 15.5% readjustment approved by the National Supplementary Health Agency (ANS) on May 26 will be incorporated from the June IPCA-15, following the methodology used in previous years.

Source: CNN Brasil

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