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Record harvest contributes to reduce inflation pace

September 06, 2017 09h00 AM | Last Updated: September 22, 2017 01h55 PM

Food products registered a deflation for the fourth month in a row (-1.07% in August), as a result of the beginning of a record harvest, which reduced the prices of the main products present in the meals of Brazilians. Released by the IBGE today morning, the Extended Consumer Price Index - IPCA of August stayed at 0.19%, reaching a cumulative rate of 1.62% in the year, the smallest cumulative index in the year for August since the implementation of the Real Plan (1994). The cumulative rate in the last 12 months decelerated to 2.46%, a result below the 2.71% recorded in the immediately previous 12 months.

The IPCA unveiled that the drop in food products was leveraged by the reduced prices of carioca beans (-14.86%), tomatoes (-13.85%), crystallized sugar (-5.90%), long-life milk (-4.26%), fruits (-2.57%) and meat (-1.75%). Food prices reduced by -2.37% between May and August.

The biggest impact in terms of inflation came from the group of Transportation (1.53%), in which fuel (6.67%) exerted the major influence in the month´s index. The liter of ethanol became 5.71% more expensive, on average. Gasoline rose 7.19%, due to the increase in PIS/COFINS – in force since July – and to the policy of adjustments of fuel prices. Nineteen adjustments in the gasoline prices were announced within the data collection period of the IPCA in August.

Fernando Gonçalves, manager of the IPCA, highlighted that the increase in transportation in August (0.27 p.p.) was offset by the drop in the group of Food products (-0.27 p.p.), though, in general, food products have been contributing to reduce the pace of inflation in 2017. "We are having inflation, prices are rising, though at a lower pace than last year", concluded him.

 

Text: Adriana Saraiva
Image: Pixabay
Graph: 
Helga Szpiz

 



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