Lower Ethanol Prices Help Brazilian Inflation Go Down

The Broad Consumer Price Index (IPCA) rose 0.21% in April, a slackening down from March’s 0.43% pace. Over the first four months of the year, the cumulative increase in the index totaled 1.65%, substantially lower than the 2.68% registered during the same period last year.

In April, 2005, the IPCA, which the government uses to fix its inflation targets, was 0.87%. These data were released this Wednesday, May 10, by the Brazilian Institute of Geography and Statistics (IBGE).

According to the IBGE, the deceleration in April was mainly the result of a more abundant supply of agricultural goods and a settling down of fuel alcohol prices.

Commercialization of the sugarcane harvest led to a 0.11% drop in fuel alcohol prices, which had been climbing since July of last year, to the extent that in March of this year consumers were paying 27.41% more than in December, 2005.

Following the trend in alcohol prices, gasoline prices also decreased. In March, gasoline, which had been increasing in price in function of both the rise in alcohol prices and the temporary hike in the gasoline content of the gasoline-alcohol mixture sold at the pumps, was the item that most contributed to the rise in inflation. Gasoline cost consumers 4.50% more in March than in December, 2005.

Besides fuel prices, there were also reductions in the prices of TV, sound, and computer equipment (-1.26%), home appliances (-1.06%), and interstate bus fares (-1.67%).

Data to calculate the IPCA are gathered in the metropolitan areas of Belo Horizonte, Fortaleza, Porto Alegre, Curitiba, São Paulo, Rio de Janeiro, Recife, Belém, and Salvador, as well as in the cities of Goiânia and Brasí­lia, and reflect the outlays of families that earn between one and 40 minimum wages.

Agência Brasil

Tags:

Ads

You May Also Like

Brazil Exports Over US$ 10 Billion in June, a Record

Brazilian exports set an all-time record in June, when they surpassed the mark of ...

Brazil Just Set a New Record of Energy Consumption

Brazil’s National Electricity System Operator (ONS) reported a new record of consumption this past ...

Brazil Pays Homage to Kyoto Accord

In homage to the Kyoto Protocol, which went into effect on Wednesday, February 16, ...

Brazil’s Vivo Gets Intellisync for Its Wireless Email

California-based Intellisync Corporation, a leading developer and marketer of wireless email and mobile software, ...

Middle East Orders 11 New Jets from Brazil’s Embraer

Brazilian aircraft manufacturer Embraer announced sales of four new executive jets to clients in ...

Industry Creates 600,000 New Jobs in Brazil

Industry in Brazil was the leader in job creation in the country in 2004. ...

LETTERS

Debate Goes OnBy Brazzil Magazine I’m really looking forward to getting your magazine. I ...

Brazil’s Petrobras Spreads the Riches and Boosts Small Businesses

For a little over three years now, more than 2,000 micro and small businesses ...

Brazil Investigates Ring Behind Death of American Nun

The landowner, Vitalmiro Bastos de Moura, arrested on Sunday, March 27, may not be ...

Cut PET brick inside a woodee mould

Brazil Builds Houses Using Coke Bottles as Bricks

Concerned about the volume of soft drink bottles thrown in the waterways of Manaus, ...