Inflation hits 0.87% in August, highest figure in August since 2000
September 09, 2021 09h00 AM | Last Updated: September 12, 2021 08h47 PM
Inflation rose by 0.87% in August and reached its peak in a month of August since 2000. The cumulative index in the year stayed at 5.67% and, in the last 12 months, at 9.68%, above the rate of the 12 previous months (8.99%). In August 2020, the monthly change amounted to 0.24%. These data come from the Extended National Consumer Price Index - IPCA, released today (9) by the IBGE.
Eight of the nine groups of products and services surveyed rose in August, with a highlight to transportation, which recorded the main hike. Led by fuels, the group accounted for the biggest change (1.46%) and for the main impact (0.31 p.p.) on the general index. Gasoline rose 2.80% and accounted for the main individual impact (0.17 p.p.). Ethanol (4.50%), vehicle gas (2.06%) and diesel (1.79%) also got more expensive in the month.
“The price of gasoline is affected by price adjustments in refineries according to the price policy set by Petrobras. The dollar, prices in the foreign market and the high prices of biofuels are factors that affc[ect costs, which ends up being transferred to the final consumer. The cumulative increase of gasoline prices in the year if 31.09%; of ethanol, 40.75% and diesel, 28.02%, says the survey analyst André Filipe Guedes Almeida.
Other highlights were private vehicles, which recorded an increase of 1.16% in August. Used cars (1.98%), new cars (1.79%) and motorcycles (1.01%) remained on an upward trend and jointly contributed with 0.10 p.p. to the IPCA of August. In public transportation (-1.21%), air fares fell 10.69%. Prices of ride sharing transportation rose 3.06% and of intercity buses, 0.62%) as a result of price adjustments in Salvador e Belo Horizonte and Porto Alegre.
Food and beverages (1.39%) accounted ror the second main contribution (0.29%), having accelerated against July (0.60%). Food at home went from 0.78% in July to 1.63% in August, mainly due to the rise of potato (19.91%), ground coffee (7.51%), chicken pieces (4.47%), fruits (3.90%) and meats (0.63%). In terms of decreases, onion (-3.71%) and rice (-2.09%) stood out.
Food away from home (0.76%) accelerated in relation to July (0.14%), mainly due to snacks (1.33%) and meals (0.57%), whose prices had risen 0.16% and 0.04% in the previous month, respectively.
In the group Housing (0.68% and 0.11 p.p.) the result was affected by electricity (1.10%), which decelerated against the previous month (7.88%). “The result is a conequence of price adjustments in Vitória, Belém and one of the concessionnaries in São Paulo. Also, the red tariff flag, level 2, which adds R$ 9.492 to every 100 kWh consumed, was in effect in July and August,” Mr. Almeida says.
The prices of bottled gas (2.70%) and piped gas (2.40%) rose as well. In the case of bottled gas, price adjustments took place in Curitiba e no Rio de Janeiro. Water and sewage fare rose 1.02% due to the change in the charging methodology in Belo Horizonte.
The group Health and Personal care (-0.04%) was the only one with negative change, due to the decrease of 0.43% in personal hygiene items. Health insurance plans dropped 0.10%.
The survey also shows that inflation was observed in all the areas surveyed in August. Brasília recorded the biggest increase (1.40%), due to rise of gasoline (7.76%) and electricity (3.67%). The main result took place in the metropolitan area of Belo Horizonte (0.43%), due to fall of air fare prices (-20.05%) and of water and sewage fares (-13.73%).
INPC rises 0.88% in August
The National Consumer Price Index - INPC increased by 0.88% in June, being 0.14 p.p. below the July figure (1.02%). The cumulative index in the year stayed at 5.94% and, in 12 months, at 10.42%, above the 9.85% registered in the 12 previous months. In August 2020, the rate was 0.36%.
Food products rose 1.29% in August, standing above the July figure (0.66%). Non-food products rose 0.75%, whereas they had recorded 1.13% in July.
All the areas recorded increases in August. The lowest index was that of Fortaleza (0.43%), with decreases in the prices of rice (-2.81%), meats (-2.09%) and personal hygiene items (-1.39%). Brasília recorded the biggest increase (1.60%), influenced by gasoline (7.76%) and electricity (3.67%).
IBGE restarts onsite price collection
In July, the IBGE restarted onsite collection gradually in some establishments, as provided for by Ordinance no. 207/2021. Due to the pandemic, since March last year, price collection had been exclusively carried out by other means, such as websites, telephone or e-mail.
The IPCA encompasses households with earnings between 1 and 40 minimum wages, whereas the INPC, households with earnings between 1 and 5 minimum wages, living in the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, as well as in the Federal District and in the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju. Data are available at Sidra. Get to know more about the IPCA at IBGE Explains.