Vitor Abdala      Reporter Agência Brasil

Rio de Janeiro – Prices (inflation), as measured by the Broad Consumer Price Index (“IPCA”), which the government uses as its benchmark index (to measure and set inflation targets), rose 0.47% in May, compared to prices in April. That was less than prices rose in April, compared to March (up 0.77%). The smaller IPCA increase in May is seen as a sign that although prices continue to rise, they are rising more slowly.

The segment that helped keep the IPCA down was transportation where there was deflation of – 0.24% (that is, prices actually fell 0.24% in May, compared to April).

However, May 2011 inflation as measured by the IPCA rose more than it did in May 2010 (0.44% and 0.43%, respectively).

The cumulative increase of the IPCA for the year is now at 3.71%, and for the last twelve months 6.55%.

Meanwhile, the cumulative National Consumer Price Index (“INPC”), which measures inflation for families with monthly incomes of up to six minimum wages (the Brazilian minimum wage is R$545), is now up 3.48% for the year and 6.44% for the last twelve months.

Allen Bennett – translator/editor The News in English