IPCA: electricity falls in April, but regional variations impact consumers

The country's official inflation rate rose 0,43% in April and accumulated a 5,53% increase in the last 12 months
IPCA electricity falls in April, but regional variations impact consumers
Photo: Freepik

The country's official inflation, measured by the IPCA (Broad National Consumer Price Index), closed the month of April with an increase of 0,43%, at a level that was below the rate observed in March (0,56%), according to data from IBGE (Brazilian Institute of Geography and Statistics). 

Despite this, this was the highest increase for the month since 2023. In the year to date, inflation in Brazil totals 2,48% and, in the last 12 months, it reaches 5,53% – an index above the target ceiling CMN (National Monetary Council): 3%, with a maximum of 4,5% due to the tolerance range of 1,5 points.

Among the groups that make up the IPCA, Housing slowed from 0,24% in March to 0,14% in April. Within this group, the highlight was residential electricity, which showed an average drop of 0,08% in the month, with a strong influence of regional adjustments applied by distributors.

In some capitals, the adjustments put pressure on tariffs:

  • Aracaju ed an increase of 1,68%, reflecting a 6,99% adjustment in tariffs as of April 22; 
  • Campo Grande had a positive variation of 0,62%, with an adjustment of 0,91%; 
  • Salvador remained practically stable (-0,07%), even with the 2,07% increase in fares.

On the other hand, some regions showed a reduction:

  • Fortaleza saw a 1,68% drop in fares as of the 22nd, reflecting a slight decline of 0,19%;
  • Recife recorded the biggest drop, with -1,70%, even after the 3,33% adjustment at the end of the month.

Despite the slight national average drop, the data shows that energy costs remain volatile in several regions, impacting family budgets and highlighting the importance of solutions that bring predictability to the consumer. 

In recent months, residential electricity, along with food, has been one of the main drivers of high inflation in the country. In May, the electricity bill is expected to once again exert significant pressure on the IPCA, due to the activation of the yellow tariff flag – which imposes extra charges on Brazilian families’ bills.

Electricity bills soar, pushing February inflation to its highest level since 2003

How is the IPCA calculated?

The IPCA has been calculated by the IBGE since 1980 and considers families with a monthly income between 1 and 40 minimum wages, regardless of the source of income. 

The index covers ten metropolitan regions of the country, in addition to the cities of Goiânia (GO), Campo Grande (MS), Rio Branco (AC), São Luís (MA), Aracaju (SE) and the Federal District (DF).

For the April result, prices collected between April 1 and 30, 2025 were compared with those in effect from February 27 to March 31, 2025.

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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