The Consumer Price Index (CPI) was at the high end of expectations for April and 12-month inflation is far from the Central Bank’s goal. As reported by the National Institute of Statistics (INE), in April 2024, the Consumer Price Index (CPI) recorded a monthly variation of 0.5%, accumulating an advance of 2.2% for the year.

So, 12-month inflation of the spliced ​​series rose from 3.7% to 4%. Meanwhile, the reference for the Central Bank would go from 3.2% to 3.5%. It represented a setback to bring the price variation back to the 3% goal.

For the fourth month of the year, The expectations of the economists consulted about the April CPI had been adjusted to between 0.3% and 0.5%.

Given this context, The CPI without volatiles rose 0.5% in the month and the CPI minus food and energy rose 0.3% in the same period. Meanwhile, the Energy CPI gained 1.9% in the month and the Food CPI rose 0.7% between March and April.

As explained by the INE in a statement, eight of the thirteen divisions of the CPI basket contributed positively to the monthly variation of the indexthree presented negative incidences and two registered zero incidence.

Among the divisions with price increases, the increases in food and non-alcoholic beverages stood out (0.7%) with 0.154 percentage points (pp.), and transportation (1.1%), with 0.148pp. The remaining divisions contributed, together, 0.298pp.

In detail, The food and non-alcoholic beverage group posted monthly increases in ten of its 15 classes. The most important was dairy products, vegetable drinks and eggs (2.3%), which had an impact of 0.060 pp., while bread, cereals, flours and pasta (1.0%) contributed 0.042 pp.

“Of the 81 products that make up the division, 45 showed price increases, highlighting bread (2.2%), with an incidence of 0.048pp., and eggs (6.0%), with 0.029pp. The remaining products with positive incidents accumulated 0.222pp,” added the INE in its technical sheet.

While, The transportation division recorded monthly increases in seven of its eleven classes. According to the INE, the most important was fuels for personal vehicles (3.2%), which contributed 0.126pp., followed by automobiles (1.5%), with 0.055pp.

“Of the 25 products that make up the division, 15 reported increases in their prices, highlighting gasoline (3.4%)with an incidence of 0.116pp., followed by new cars (1.6%), with 0.055pp. The remaining products with positive contributions accumulated 0.038pp,” he explained.

Another of the products that the INE highlighted for its increase was the rent to increase 0.5% in the year and accumulating an advance of 3.3% in the year.

While, among the divisions that recorded monthly decreases in their prices, clothing and footwear stood out (-1.9%)with an incidence of -0.052pp.

Specifically, clothing and footwear recorded decreases in three of its four classes, the most notable was clothing (-1.7%)which contributed -0.028pp.

“Of the 23 products that make up the division, 17 recorded price decreases, highlighting women’s sneakers (-5.7%), with an incidence of -0.011pp., and clothing accessories (-7.0%), with -0.007pp. The remaining products with negative contributions accumulated -0.036pp,” added the INE.

The INE also highlighted the 7.0% drop in international air transport, registering a variation of -23.8% so far this year, and the drop in the price of cookies, which registered a monthly decrease of 4.4% and a drop of 3.1% in the year.