Brazil’s inflation rises to 12.1% y/y in April

Brazil’s consumer inflation continued to accelerate in April, as the Broad National Consumer Price Index (IPCA) rose by 12.1% y/y in the month, after increasing by 11.3% y/y in March. Notably, fuel prices rose by 31.2% y/y in the fourth month of 2022, compared to 27.5% y/y in March, reflecting the impact of the Russia-Ukraine war on oil prices. The food inflation accelerated to 13.5% y/y in April, from 11.6% y/y in March, supported by higher prices of potatoes (+63.4% y/y) and tomatoes (+103.3% y/y). Electricity prices, however, slowed down to a 20.5% y/y growth in April, from a 28.5% y/y increase in March.

Fuel prices rose by 31.2% y/y in the fourth month of 2022, reflecting the impact of the Russia-Ukraine war on oil prices

On a monthly basis, the seasonally adjusted IPCA rose by 1.06% m/m in April, after surging by 1.62% m/m in March. Prices on the transportation segment rose by 1.91% m/m in the fourth month of the year, supported by higher prices of gasoline (+2.48% m/m), and ethanol (+8.44% m/m), and diesel (+4.74% m/m). The subindex of food and beverages increased by 2.06%, reflecting higher prices of tomatoes (+10.2% m/m), and potatoes (+18.3% m/m). According to the IBGE, the consumer inflation accelerated in eight out of nine segments analysed in April, on a month-on-month basis. The subindex of housing was the only one to decline, by 1.14% m/m, reflecting lower electricity prices (-6.27% m/m).

In March 2022, Brazil’s producer price index (PPI) increased by 18.31% y/y, following growth of 20.02% y/y in February. Notably, producer prices for oil refining and alcohol products rose by 41.97% y/y in March, followed by other chemical products (+37.5% y/y), and metal products (+24.38% y/y), and machines and equipment (+23.8% y/y).

On a monthly basis, the PPI rose by 3.13% m/m in March, accelerating from the 0.54% m/m growth recorded in February. Producer prices for oil refining and alcohol products increased by 10.84% m/m, while the PPI for the extractive industry rose by 10.69% m/m.

Read more about inflation in Brazil.

Brazil's consumer inflation is updated monthly, available from December 1980 to April 2022. The data reached an all-time high of 6819.78% y/y in April 1990 and a record low of 1.65% y/y in January 1999.