IPCA: inflation slows to 0.58% in May, but food at home has the biggest increase for the month in 18 years

Inflation slows to 0.58% in May, but remains above target and food puts pressure on IPCA
The Broad National Consumer Price Index (IPCA), considered the country's official inflation, rose 0.58% in May, according to data released this Friday (12) by the Brazilian Institute of Geography and Statistics (IBGE).
Do you have any suggestions for a report? Send to g1
Although the result represents a slowdown in relation to the 0.67% recorded in April, accumulated inflation in 12 months accelerated from 4.39% to 4.72%. Year-to-date, the IPCA totals 3.20%. In May last year, official inflation had registered an increase of 0.26%.
As a result, the index is above the tolerance range of the inflation target defined by the National Monetary Council (CMN). For 2026, the objective is to maintain the IPCA at 3%, with a maximum limit of 4.5%. Since last year, this target has become continuous - this means that compliance is monitored month by month based on inflation accumulated over 12 months.
The Food and beverages group was the one that put the most pressure on inflation in May, accounting alone for 0.29 percentage points of the IPCA and registering an increase of 1.33%.
According to IBGE, the main factor behind this performance was the increase in the prices of food consumed at home. Food at home inflation recorded in May 2026 was the highest for the month since May 2008, when the index had increased 2.27%.

Housing followed, with an impact of 0.18 percentage points and a variation of 1.22%, and Health and personal care, which contributed 0.12 percentage points after increasing 0.90% in the month.
Together, these three groups concentrated most of the rise in prices in May and explain a large part of the index result.
See the results of the IPCA groups:
Food and drink: 1.33%;
Housing: 1.22%;
Housing items: 0.08%;
Clothing: 0.62%;
Transportation: -0.46%;
Health and personal care: 0.90%;
Personal expenses: 0.41%;
Education: 0.00%;
Communication: 0.23%.
More expensive food
Food consumed at home was, on average, 1.65% more expensive in May. The biggest increases were observed in potatoes, which rose 44.69%, followed by tomatoes (20.62%), onions (16.80%) and meats (1.39%).
"The increase in these items is due to issues of lower supply and, also, there is an influence on the cost of freight due to the rise in fuel prices", said the IPCA manager, José Fernando Gonçalves.
On the other hand, some products became cheaper, such as ground coffee, with a drop of 2.38%, and fruits, which fell by 0.70%.
Eating outside the home also weighed more on the pocket, but at a moderate pace. Prices rose 0.49% in May, with a slowdown in both snacks and meals, which had smaller increases than those recorded in April.
The Housing group rose 1.22% in May, mainly driven by the increase in residential electricity bills, which rose 3.67% and was the item that contributed the most individually to the month's inflation.
According to the IBGE, the increase reflects readjustments in energy tariffs in several capitals, such as Aracaju, Fortaleza, Salvador, Campo Grande, Recife and Belo Horizonte.
In addition, in May the yellow tariff flag was in force, which adds R$1,885 to the electricity bill for every 100 kWh consumed, contributing to an increase in consumer expenses.
In the Health and personal care group, prices rose 0.90% in May. The main highlight was the increase in personal hygiene items, which became 1.95% more expensive, with perfumes registering an increase of 4.42%. Health plans also underwent adjustments during the period, with an average increase of 0.50%.

Fuel drop alleviates transport inflation
The Transport group was the only one to record a drop in prices in May, with a drop of 0.46%, driven mainly by the reduction in the value of fuel, which became 1.95% cheaper.
The highlights were:
⛽ Gasoline: 1.86%
Diesel oil: 4.46%
Ethanol: 0.62%
Vehicle gas: -1.24%
The highlight was ethanol, with a drop of 6.20%, followed by diesel oil (-2.34%) and gasoline (-1.46%), which had the biggest individual negative impact on inflation in the month. In the opposite direction, vehicle gas rose 5.81%.
Despite the drop in fuel prices, some items in the group became more expensive. Airfares increased 3.20% in May, after a sharp reduction in the previous month, while urban bus, subway and intercity bus fares were impacted by adjustments and changes in free policies in some Brazilian cities.
Inflation
ALOISIO MAURICIO/FOTOARENA/FOTOARENA/ESTADÃO CONTEÚDO

Source: G1