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Food prices drove official inflation in April, which stood at 0.67 percent. The result shows a slowdown compared to the previous month, when the Broad National Consumer Price Index (IPCA) stood at 0.88 percent.

Over the past 12 months, cumulative inflation stands at 4.39 percent, within the Brazilian government’s target of 3 percent, with a tolerance margin of 1.5 percentage points either way, allowing it to reach up to 4.5 percent. For the 12-month period ending in March, the rate stood at 4.14 percent. In April last year, inflation was 0.43 percent. The 12-month cumulative rate at that time stood at 5.53 percent.

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The data were released on Tuesday (May 12) by the Brazilian government’s statistics agency IBGE. The IPCA measures the cost of living for households with incomes between one and 40 minimum wages.

Food

Research analyst Fernando Gonçalves notes that the food and beverages group accounted for 43 percent of April’s inflation.

The cost of food at home rose 1.64 percent, while eating out increased 0.59 percent. Gonçalves explains that food prices rose due to product supply and transportation costs.

“In the case of milk, with the arrival of the drier weather typical of this time of year, pasture availability declines, requiring the use of feed for the animals, which drives up costs,” says Gonçalves.

He points out that much of the production is transported by truck. “The rise in diesel prices increases freight costs for food products and is passed on to the end consumer,” he states.

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