Four of the seven capitals that make up the IPC-S registered a slowdown, points out FGV

The Consumer Price Index – Weekly (IPC-S) for the second four weeks of May 2024 remained at 0.45%, accumulating an increase of 3.23% in the last 12 months, according to Fundação Getulio Vargas (FGV) .

Economist Cesar Bergo highlights that four of the seven capitals surveyed registered a slowdown in their rates of variation. “Not that it hasn’t gone up, but it has gone up a lot less than it was going up. These capitals were São Paulo, Rio de Janeiro, Recife and Belo Horizonte,” he explains.

See the percentage changes per month until May 15th:

• Rio de Janeiro: 0.40
• Belo Horizonte: 0.53
• Recife: 0,32
• São Paulo: 0.52
• Salvador: 0,47
• Brasilia: 0.23
• Porto Alegre: 0.47

The economist points out that there was a decrease in prices, compared to the previous period, in the Education and Transport groups. He highlights that there was a drop in the price of fuel (gasoline and ethanol), in the price of women’s clothing and fruit.

Furthermore, he explains that contrary to what happened in the previous period, medicines also showed a slowdown in prices.

Expectations

Economist Cesar Bergo points out that the intense rains hitting Rio Grande do Sul should affect the IPC-S in the coming months.

“The state is a good food supplier, with rice and corn harvests and also wheat production. It is very difficult to sell there and this must have an impact on the price of these products in the capitals, even if the government has been importing a quantity of rice. We estimate that this impact could be something close to 0.1%, up to 0.2%”, he informs.

He also explains that the fuel price gap could continue to put pressure on the IPC-S. Therefore, he states that in the coming months, accumulated prices should fall.

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