The Extended National Consumer Price Index (IPCA) in June had a change of 0.01% and was 0.12 percentage points (pp) below the May rate (0.13%). The cumulative change in the year was 2.23% and in the last twelve months it fell to 3.37%, below the 4.66% registered in the preceding 12 months. In June 2018, the rate was 1.26%.

The groups Food and beverage and Transportation together account for 43% of household expenditures and presented deflation in June, respectively, -0.25% and -0.31%, both with -0.06 pp of impact. Communication (-0.02%) also had a negative price change. Health and personal care (0.64%) was the group with the highest change and the highest impact (0.08 pp), as shown in the following table.

Despite the increases in tomatoes (from -15.08% in May to 5.25% in June) and meat (from 0.25% in May to 0.47% in June) 0.25%) in June, accumulating a change of 2.89% in 2019. This deflation was due to the steep fall in the prices of fruit (-6.14%) and carioca beans (-14.80%). The two items had already declined in April and May: respectively,  -0.71% and -2.87% for fruits and -9.09% and -13.04% for carioca beans.

The Transportation group (-0.31%) concentrated the most intense impacts on the June IPCA in both sides. On the positive side is the item airfare with a 18.90% change and 0.07 pp of impact. Influencing negatively are fuels (-2.41%) with a highlight to gasoline (-2.04% and -0.09 pp).

Regionally, gasoline ranged between -4.66% in the metropolitan area of Porto Alegre and 0.57% in São Luís. Both diesel oil (-0.83%) and ethanol (-5.08%) the lowest in all the surveyed areas: from -8.51% in the metropolitan area of Belo Horizonte to -0.35% in the city of Salvador. Vehicular gas (2.38%) rose, mainly due to the increase of 8.38% in São Paulo, due to the adjustment in force since May 31.

Another highlight in Transportation was urban bus, whose change of 0.39% was due to the 9.09% increase in Belém (7.27%) in force since June 5. The increase of intercity buses (0.43%) is attributable to the 6.66% increase in tickets in the metropolitan area of Porto Alegre (0.28%), in force since June 1; the 10.00% rise in the metropolitan area of Fortaleza (7.91%), as of May 25; and the increases raging between 3.30% and 7.50% in the metropolitan area of Salvador (0.97%), since May 6.

The Housing group decelerated from May (0.98%) to June (0.07%), especially due to the item electricity (-1.11%) that exerted an impact of -0.04 pp in the IPCA. This is due to the green tariff in force in June, without additional charges for the consumer. In May, the yellow tariff was in effect, with an additional cost of R$0.01 per kilowatt-hour consumed.

Electricity prices declined in almost all surveyed areas, except in the metropolitan areas of Belo Horizonte (4.42%) and Vitória (4.81%). The first area reflects the adjustment of 7.89% effective since May 28 and the second, the increase in the PIS/COFINS rate. In addition, in the metropolitan region of Porto Alegre (-2.82%), had two of its three concessionaires merged and, to unify the tariffs, there were increases of 3.61% and 6.19% as of June 19. In Curitiba (-1.67%) the increase was 1.99%, effective since June 24.

Still in the Housing group, piped gas rose (7.33%), due to the increase up to 27% in fees in São Paulo (19.93%), since May 31. The water and sewage rate (1.56%) reflects the following adjustments: 4.72% in São Paulo (1.60%), since May 11; 3.45% in Brasília (3.23%), since June 1st (in addition to 2.99% on April 1st) and 4.70% in Salvador (2.62%), since 12 June. In the metropolitan area of Curitiba (8.38%) there was a full use of the 8.38% increase in effect since May 24, which had not been previously incorporated.

The Health and Personal Care group was responsible for the greatest change and the greatest impact (0.64% and 0.08 pp) on the IPCA among the groups surveyed, due to the 1.50% rise of the item personal hygiene, whose impact on the IPCA was 0.04 pp.

Regarding the regional indexes, the metropolitan area of Vitória (0.54%) presented the greatest change, due to the observed increases in airfares (20.21%) and electricity (4.81%) because of the increase in the PIS/COFINS rate. The lowest was the metropolitan region of Porto Alegre (-0.41%), influenced by the drop in fruit (-14.37%) and gasoline (-4.66%) prices.

The IPCA has been calculated by the IBGE since 1980, refers to families with monetary income of between 01 and 40 minimum wages, whatever the source, and covers ten metropolitan areas, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasilia. For the calculation of the index of the month, the prices collected between May 30 and June 28, 2019 (reference) were compared with those in force between May 1 and May 29, 2019 (base).

June INPC stays at 0.01%

The National Consumer Price Index (INPC) in June had a change of 0.01%, 0.14 pp below the May rate (0.15%). The cumulative change for the year was 2.45% and the cumulative index in the last twelve months fell to 3.31%, below the 4.78% in the previous 12 months. In June 2018, the rate was 1.43%.

Food products (-0.18%) fell in June, although less intensely than in the previous month (-0.59%). Non-food products  changed by 0.09%, while in May it had registered 0.48%.

The metropolitan area of Vitória (0.56%) had the greatest change among the surveyed places, due to the item electricity (4.80%). The lowest index was São Luís (-0.42%), influenced by the drop in tomato (-6.91%) and meat (-2.21%) prices.

For the calculation of the index of the month, the prices collected between May 30 and June 28, 2019 (reference) were compared with those in force between May 1 and May 29, 2019 (base).

The INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília.