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


  • Show Comments (1)

  • Guest

    I have a blog that contains relevant content to this story, and would like to post this article on it. I will naturally properly reference it, as well as offer a link to this site. If you are interested, the blog can be found at:
    Fell free to revue it and leave comments.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Brazil Makes from Melted Weapons a Children’s Park

The weapons turned in to the state of São Paulo, Brazil, in the Disarmament Campaign ...

Hotel in Ceará, Brazil

The Lowdown on Getting Permanent Residency in Brazil

Since October of last year, a new law has passed in Brazil whereby the ...

In Brazil the Left Thrives

The big winners of Brazil’s 1964 military coup, unlike what the Brazilian military think, ...

Brazil and Latin America Gather in Spain for Summit

Brazilian President Luiz Inácio Lula da Silva arrived today in the Portuguese city of ...

The Stangs’ Open Letter and Challenge to Brazil’s President Lula

The murder of our sister Dorothy Stang – martyr, Pará citizen of the year, ...

Brazil Gets Zero Tariff Access to the Gulf, a US$ 200 Billion Market

Negotiations between the Mercosur and the Gulf Cooperation Council (GCC) considering the regime of ...

Cathedral of Brasília, in the Brazil's Capital

Government, Industry, Unions, Media, Church, They’re All Bankrupt in Brazil

You can’t deny it: in Brazil public authority is melting like ice cream under ...

Brazil Steel Production Has Record Year with 10% Growth

According to estimates by the Brazilian Iron and Steel Sector Association (IBS) Brazil's steel ...

Africa Cheers Brazilian Win Against US on Cotton Subsidies

The Brazilian Minister of Foreign Relations, Celso Amorim, yesterday visited Gabon, where he met ...

Imports Up, Exports Down and a Shrinking Surplus in Brazil

In the fourth week of July imports rose over 15% and exports dropped 17.5%, ...