Rio, 5/12/2006 (Agência Brasil - ABr) - Cumulative inflation for the last 12 months, ending in April, as measured by the Broad Consumer Price Index (Índice Nacional de Preços ao Consumidor Amplo) (IPCA), was 4.63%. That is the lowest 12-month rate since the period ending in July 1999, when it reached 4.57%. The numbers are from the government statistical bureau (Instituto Brasileiro de Geografia e Estatística) (IBGE).

"The numbers show a generalized convergence of prices at a lower level," declared Eulina Nunes, who coordinates price indexes at the IBGE. She points out that the agricultural sector has helped by increasing farm produce supply by an estimated 8% this year. "There is also the factor of the weaker dollar which has the effect of pushing prices downward."

The government uses the IPCA as a gauge for its inflation targets. The inflation target for this year is 4.5%. For the first four months of this year, the cumulative IPCA is up 1.65%, compared with 2.68% during the same period last year.

Translation: Allen Bennett