Consumer Price Index rises 0.61 in the four-week period in May

The Consumer Price Index – Weekly (IPC-S) for the four-week period in May increased by 0.61% and has accumulated an increase of 3.55% in the last 12 months. According to FGV-IBRE data, five capitals recorded a jump in their rates of change. Salvador had an increase of 0.92%; Belo Horizonte, 1%; Porto Alegre, 0.41%; and São Paulo of 0.82%.

Economist André Braz, coordinator of the FGV IBRE Price Indices, explains that the indicator continues with a slight acceleration, since some cities in the country are experiencing seasonal effects, linked, above all, to the clothing sector, marked by the change of seasons, spring to summer and autumn to winter.

“And also the food part because of natural foods, some with weaker offers at this time of year. Therefore, the behavior of the inflation index continues to be dominated by seasonal and transitory effects. This means that the rate of change in some cities that are part of the IPC-S has accelerated,” he says.

For Braz, the projection for the coming months is that inflation will slow down and that the indicator will reach the point closest to the inflation target, which is 3.25% in June this year.

“Only in the second semester do we find a space for a new cycle of acceleration, because last year, in the second semester, it was the period in which the government cut the Tax on Circulation of Goods and Services (ICMS) of the energy, telephony and also gasoline. And that helped a lot to lower the prices of these items”, he points out.

By Brasil 61