Thaís Leitão
Reporter - Agência Brasil

Rio - Inflation measured by the Broad Consumer Price Index (IPCA) decelerated in May to 0.10%, down from April's rate of 0.21%. During the first five months of this year, the cumulative index was up 1.75%, well below last year's 3.18% for the same period. These data, released yesterday (8) by the Brazilian Institute of Geography and Statistics (IBGE), also reveal that this year's January-May result is the best since 2000, when the IPCA fell 1.41% in the first five months of the year

Moreover, the cumulative rate of 4.23% for the past 12 months is the lowest since the 12-month period ending in June, 1999 (3.32%). According to the IBGE's coordinator of Price Indices, Eulina Nunes dos Santos, the trend this year is for "the 12-month rate to move lower and lower, since none of the items poses the threat of inflation."

She explained that the deceleration in May is mainly a consequence of the 11.06% decrease in the price of fuel alcohol, which reduced the index by 0.16 percentage point. The price of this product had been rising since July, 2005; the biggest jump, 12.85%, occurred in March of this year.

Translation: David Silberstein

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