IPCA-15, the inflation preview, rose 0.51% in March, driven by spending on health and personal care
In 12 months, the indicator accumulates a high of 4.07%. The official preview of inflation slowed down compared to last month, when it had registered an increase of 0.57%. Medicines rose in price across the country Alessandro Marques/Procon Natal The Extended National Consumer Price Index 15 (IPCA-15) — considered the country’s official inflation preview — rose 0.51% in May, reported this Wednesday (26) the Brazilian Institute of Geography and Statistics (IBGE). The high was driven by the advance of 1.49% in spending on health and personal care. The IPCA-15 slowed down compared to last month: in April, the index rose 0.57%, driven by fuel prices, and accumulated a rise of 4.16% in one year. With the result, the index started to accumulate an increase of 4.07% in the period of 12 months. The numbers came well below the expectations of economists and financial market analysts. BTG Pactual’s analysis team predicted a positive variation of 0.62%, while Warren expected 0.65%. The median of projections was a high of 0.64%, according to Investing. In the year so far, the accumulated IPCA-15 is 3.12%. This brings the preview of inflation, for the first time, below the target of the Central Bank of Brazil (BC) for 2023. The inflation target for this year is 3.25%, ranging from 1.75% to 4.75% . Despite this, expectations for inflation at the end of the year are still above the target ceiling. According to the latest edition of Boletim Focus, a BC report that gathers forecasts from financial market agents, the forecast is that the IPCA will end the year at 5.80%. Weights on IPCA-15 inflation According to the IBGE, seven of the nine groups of products and services surveyed by the indicator rose in May, with emphasis on health and personal care and food. See the variation for each group: Food and beverages: 0.94% Housing: 0.43% Household items: -0.28% Clothing: 0.35% Transport: -0.04% Health and personal care: 1, 49% Personal expenses: 0.40% Education: 0.07% Communication: 0.02% Expenditure on health grew The main weight in the IPCA-15 of May came from the group of health and personal care, with a strong rise of 2. 68% in the prices of pharmaceutical products. The IBGE explains that the increase is a consequence, above all, of an adjustment of up to 5.60% in the value of medicines, which was authorized on March 31 and came into effect in April. However, personal hygiene items also recorded a positive change in the last month, changing from a high of 0.35% in April to 1.38% in May. Among the hygiene items that had the most increase in price, the IBGE highlights perfumes, which rose 2.21% in the month.