IPC-S shows sixth straight decline in inflation

02/06/2003 - 23h38

Rio, June 3, 2003 (Agência Brasil - ABr) - The Weekly Consumer Price Index (IPC-S), compiled by the Getúlio Vargas Foundation (FGV) during the 30-day period between April 27 and May 26, showed a variation of 0.74%. This result constitutes the sixth straight decline since the index registered a variation of 1.28% for the month ending April 14. The FGV economists caution, however, that this monthly rate of 0.74% is equivalent to a cumulative annual inflation rate of 9.25%, which exceeds the government's inflation target of 8.5% for 2003.

Among the seven groups of spending categories covered by the survey, four underwent deceleration: Food, Housing, Education, and Reading, Recreation, and Transportation, the last of these being the most pronounced, falling from -0.03% to -0.50%. Together, these groups represent 81.19% of the IPC-S. (DAS)