Light, transportation and food to cause first deflation in 11 years
July 07, 2017 09h00 AM | Last Updated: July 18, 2017 04h06 PM
The IPCA, index that measures inflation for families, recorded -0.23% in June – the first negative result since June 2006 (-0.21%) and the second lowest rate since August 1998, when the index reached -0.51%.
The IBGE coordinator of price indexes, Eulina Nunes, highlights that "what calls attention is that the three major groups in family budgets decreased, affecting the main expenses of the population: food, housing and transportation.
Electricity bills, which in May had increased 8.98%, taking inflation up by 0.31%, turned the other way around in June, with decrease of -5.52%. That was mostly due to the replacement of the red for the green flag, which means a R$3.00 reduction in each 100 Kwh consumed.
Fuels were down 2.84%, taking the group of Transportation to -0.52%, with a highlight to the two consecutive reductions of gasoline prices, authorized by Petrobras (in the end of May and in June) and to the -4.66% change in ethanol.
Food products, which represent 26% of the IPCA, had a -0.50% decrease, pressed by food at home (-0.93%), with reduction in all areas surveyed. Important items, as tomatoes, potatoes and fruits, had significant price drops. According to Eulina Nunes, "such price decline reflects the positive results of crops and the effect of the decreased purchasing power of the population, which lead retailers to offer sales and promotions."
Text: Eduardo Peret
Photos: Licia Rubinstein / Photos.com / Sebástian Freire - Flickr
Updated on 7/7/2017 at 9:45 am
