Even with the rise in electricity, inflation is the lowest for July in five years

August 08, 2019 09h00 AM | Last Updated: August 08, 2019 11h54 AM

Changed in the tariff flag contributed to the rise in electricity in July - Photo: Licia Rubinstein/IBGE News Agency

The rise of 4.48% in the electricity fare in July pressed the inflation, which changed from 0.01% in June to 0.19% in July, according to the Extended National Consumer Price Index - IPCA, released today by the IBGE.

 Despite the acceleration, the rate is the lowest one for July since 2014, when it stayed at 0.01%. The index accrues a rise of 2.42% in 2019 and of 3.22% over the last 12 months, standing below the target of 4.25% for this year.

 "Two factors contributed to the increase in the item electricity: the change in the tariff flag, which changed from green to yellow, and the adjustment of the fare in São Paulo, which weights a lot in the index", explains Pedro Kislanov, analyst of the survey. As a result, the group of housing closed with a rise of 1.20%, impacting 0.19 percentage points (p.p.) on the rate.

 Excluding electricity, the July´s IPCA would stand close to stability, since other important groups, such as food, transportation and health and personal care, remained stable or even dropped. 


Accounting for nearly one quarter of the expenditures of the households, the group of food and beverages remained stable, changing 0.01%. "On the one hand, food such as onions, fruits and meat increased. On the other hand, green vegetables and potatoes dropped their prices", clarifies Kislanov.

 Having changed -0.17% and impacted -0.03 p.p., transportation deflated in July. Although airfare increased for the second consecutive month, fuels imposed the drop of this group. "Gasoline fell 2.80% and had also dropped 2.04% in June. Ethanol, as well, fell 3.13%, coming from a drop of 5.08% last month", analyzes Kislanov. 

 The deflation of the group of health and personal care also stood out. It fell 0.20% due to the items of personal hygiene, which were on sale. As a result, this group produced a negative impact of -0.02 p.p.

 Conversely, the group of personal expenses rose 0.44%, registering the second biggest positive impact this month (0.05 p.p.). This group was pressed by the items excursion, which increased 4.43%, and domestic workers, which increased 0.24%.

Keywords: Inflação, Energia elétrica, Julho.