MercoPress. South Atlantic News Agency

Inflation down, unemployment up in Brazil.

The extended consumer price index in Brazil experienced a 0,21% increase during April, the lowest this year, according to the latest release from the Brazilian Statistics and Geography Institute, IBGE. In March the index was 0,40%.

Inflation in the first four months of 2004 now stands at 2,21% and 5,33% in the last twelve months.

Price contraction was speared by a drop in food prices, (0,26% in March and -0,17%), fuel (-8,46% in March and -12,1% in April). Other items remained mostly unchanged.

The extended consumer price index refers to Brazilian families in the one to 40 minimum wages income bracket and in the country's main cities, Rio, Porto Alegre, Belo Horizonte, Recife, Sao Paulo, Belem, Fortaleza, Salvador, Curitiba, Brasilia and Goiana.

However March unemployment in Brazil's six main metropolitan regions increased to 12,8% from 12% last March. According to IBGE a total of 2,7 million people were out of a job, 203,000 more (8,1%) than in February. This also represents 0,7% increase over the same month in 2003.

The February unemployment rates by metropolitan areas compared to a year ago are as follows, Rio do Janeiro increased from 8,6% to 9,4%; Sao Paulo, 13,3% to 14,6%; Porto Alegre, 8,5% to 9,6%; Recife remained rather stable, 12,7% to 12,6%; Belo Horizonte 11,9% to 12,1%; Salvador 17%.

IBGE also points out that the Population Economically Active March index included 21,3 million people, a 1,4% increase over February. Compared to a year ago 552,000 people, 2,7% more, are occupied or looking for their first job when the PEA index reached 20,8 million people. Women represent 44,1% of the Brazilian metropolitan workforce and men 55,9%.

As to the Occupied Population index it remained unchanged between February and March 2004, but showed a 1,9% increase over March 2003.