Inflation preview stays at 0.72% in July, the highest rate for July since 2004

Section: Economic Statistics | Marília Loschi

July 23, 2021 09h00 AM | Last Updated: July 23, 2021 03h02 PM

Electricity was the major individual impact on the July´s IPCA-15 - Photo: Licia Rubinstein/IBGE News Agency

Pressed by the rise of 4.79% in electricity, the Extended National Consumer Price Index 15 (IPCA-15) stayed at 0.72% in July. With this result, inflation preview registered the highest rise for July since 2004, when it had hit 0.93%, though it decelerated against the rate of 0.83% in June.

The data, released today (23) by the IBGE, show that electricity was the major individual impact, responsible for 0.21 percentage points in the month´s index. When the red tariff flag level 2 came into force in June, in the context of the water crisis, the rise was of 3.85%.

The acceleration in July was also due to the adjustment of 52% in the additional value of that tariff flag, which began to charge R$9.492 per each 100 kWh consumed (against R$6.243 in June), as well as to the weight of the adjustments in São Paulo and Curitiba. As a result, the group of Housing recorded the highest rise in July: 2.14%, the equivalent to 0.33 percentage points of the overall index.

Besides electricity, the group of Housing was influenced by the increase in the prices of bottled gas (3.89%) and piped gas (2.79%). The second biggest contribution came from Transportation (1.07%), followed by Food and beverages (0.49%). The only drops were in Health and personal care (-0.24%) and Communication (-0.04%).


In the group of Transportation, the rise of 1.07% (0.22 p.p.) was leveraged by airfare (35.64%), which had fallen 5.63% in June. The prices of fuels (rise of 0.38%) decelerated in relation to June (3.69%), but gasoline, which rose 0.50% in July, accrues a change of 40.32% in the last 12 months.

On the other hand, deflation was registered in the group of Health and personal care (-0.24%), which contributed with -0.03 p.p. to the overall index. It is a reflection of the adjustment of -8.19% authorized by the National Regulatory Agency for Private Health Insurance (ANS) on July 8, effective retrospectively from May 2021. This is the first time that the ANS authorizes a negative adjustment. As a result, the July´s IPCA-15 reflects the monthly fractions related to the months of May, June and July.

More about the survey

The National System of Consumer Price Indexes – SNIPC produces continuously and systematically consumer price indexes. Released on the Internet since May 2000, the IPCA-15 differs from the IPCA only in the period of price collection, which is usually from day 16 of the previous month until day 15 of the reference month, as well as in the geographic coverage.

Today, the target population of the IPCA-15 encompasses households with earnings between 1 and 40 minimum wages, whatever the source, living in 11 urban areas of the regions included in the SNIPC, which are: metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, as well as the Federal District and the municipality of Goiânia. Please take a look at the complete results at Sidra.