Rise in fuels presses inflation preview to 0.30% in July

Section: Economic Statistics | Cristiane Crelier

July 24, 2020 09h00 AM | Last Updated: July 24, 2020 11h22 AM

#PraCegoVer A foto mostra uma bomba de combustível de cor amrela, em destaque.
Fuels impacted the most in the inflation preview of July - Photo: Helena Pontes/IBGE News Agency

After four consecutive drops, gasoline rose 4.47% and also the inflation preview of July. The group of Transportation increased 1.11% and exerted the major impact on the Extended National Consumer Price Index 15 - IPCA-15 released today (24) by the IBGE, which stayed at 0.30%.

Those who returned to work now came across higher fuel prices (4.40%). Gasoline, which was dropping, rose 4.47%, according to the inflation preview of July; ethanol rose 4.92%; diesel fuel, 2.50% and vehicular gas, 0.01%. Still in Transportation, subway fare also rose (2.00%), mainly pressed by the adjustment of 8.70% in the fare in Rio de Janeiro, which came into force on June 11.

On the other hand, transportation through apps (-11.98%) and airfare (-4.16%) became cheaper. Airfare had already been falling 27.08% in May and 26.08% in June, accruing a retreat of 48.34% over the last three months. Taxi (-0.10%) also reduced, especially due to the cancellation of the adjustment occurred in January in Rio de Janeiro (-0.47%).

 In contrast, costs at home (Housing) became more expensive (0.50%), as a result of the increase in the electricity fare (1.03%) in six metropolitan areas, varying from 0.28% in Porto Alegre up to 5.15% in Fortaleza. In addition, water and sewage fees rose 0.13%. However, piped gas dropped 0.08%.

Those who need to renovate their wardrobes or buy a gift in the Fathers Day the good news that the group of Wearing apparel recorded the lowest figure (-0.91%) and the most intense negative impact (-0.04 p.p.) on the July´s index. Women’s wearing apparel (-1.32%), men´s wearing apparel (-1.18%) and children´s wearing apparel (-0.59%), as well as footwear and accessories (-0.88%) dropped.

It is also possible to save in food and beverages, which dropped 0.13% in July, after four consecutive months of rises. Food at home fell 0.20%. The major reduction was in the prices of some tubers, roots and legumes (-15.76%), like tomatoes (-22.75%), potatoes (-20.70%), carrots (-18.60%) and onions (-7.09%). Nevertheless, food away from home remains rising (0.03%), though it decelerated in relation to June (0.26%).