The influence of July stood at 0.36%, influenced, mainly, by gasoline and electricity prices, the two items of greatest impact and which underwent increases. This was the lowest figure for July since 2016, when it recorded 0.52%. In comparison with the previous month, the increase was of 0.10 percentage points.

The data are from the Extended National Consumer Price Index - IPCA, released today (7) by the IBGE. In the cumulative index of the year 2020, the indicator is of 0.46%, whereas the last 12 month, it was of 2.31%. In July 2019, the rate was 0.19%.

Among the nine groups of products and services surveyed, six recorded increase in July.  The major impact comes from Transportation, which increases 0.78% and contributed with 0.15 pp. Among the items, gasoline was what contributed with the biggest individual impact (0.16 pp) in the IPCA of the month, with a high of 3.42%.

"Gasoline keeps reversing the movement that it had in the months of April and May. It had already risen in June and returned to grow in July. Besides, there was a less intense decrease of airfares in comparisons with May and June", details survey manager Pedro Kislanov.

Diesel fuel (4.21%), ethanol (0.72%) and natural vehicular gas (0.56%) also increased, taking the group of fuels to a result of 3.12%. There was also a high in the subitem subway (0.94%) due to the 8.70% increase in the airfares of Rio de Janeiro (3.31%), in force since June 11. Still in the group, there was fall in the subitems transportation app (-8.17%) and airfares (-4.21%), both with an impact of -0.01 pp in the monthly index.

Increases in the capitals increase electricity prices

The Housing group had increase of 0.80% in the prices, an acceleration compared to June (0.04%) and contributed with 0.13 pp to the index. In that group, the second biggest individual contribution to the IPCA of the month (0.11 pp), the item electricity changed 2.59%. Of the 16 areas surveyed, 13 presented increase, a reflex of the fee adjustments in several capitals.

In São Paulo, where there was an increase of 3.60% in one of the concessionaires, the high was of 4.49%. In Fortaleza, in turn, the high was of 5.29%, thanks to a 3.20% adjustment. In Porto Alegre, whose high was of 2.37%, there was increase of 5.23% in one of the concessionaires. Salvador, Recife and Belo Horizonte also had increase in the electricity fees. Conversely, Curitiba had a 0.94% reduction and the rate fell 2.92%.

In Fortaleza and São Paulo, besides the adjustments, there was a rise in the PIS/COFINS tax. Meanwhile, in Curitiba the tax was reduced along with the reduction of the fee. It is worth mentioning that on May 26, the Regulatory agency ANEEL announced the green flag, that is, no additional charge in the electricity bill, which will last until December.

Also in the Housing group, the changes in the subitems water and sewage fees 0.02% and piped gas (-0.01%) derive respectively from the change in the charging structure implemented in Brasília (0.46%), and the 0.27% reduction in the fees in the city of São Paulo (-0.02%).

Household articles (0.90%) presented the biggest high among the groups, although it decelerated over the previous month (1.30%). The highlights, once again, were the articles TV, sound and computer items (2.87%), which contributed with 0.02 pp in July IPCA. The prices of household appliances and equipment (1.01%) also rose. In both, explains Mr. Kislanov, the exchange rate issue directly affects prices. The items of furniture (-0.22%) continue to fall, although with a lower drop than that of June (-1.33%).

Food holds steady and changes 0.01%; wearing apparel keeps falling

The group Food and beverage stood close to stability, changing 0.01%. Food for household consumption presented high of 0.14%, with meat exerting the biggest positive impact (0.09 pp). Meat prices increased 3.68%. Other important food items in the family baskets, as long life milk (3.79%), rice (2.20%) and fruit (1.09%) also increased. Among the drops, the highlights were potatoes (-24.79%), with the major negative individual contribution to the IPCA of July, with -0.06 , as well as carrots (-20.67%) and tomatoes (-16.78%). There was decrease of 0.29% in the item food away from home, influenced by the result of the subitem "snack" (-0.86%).

Among the groups which presented decrease in prices the highlight was wearing apparel, which presented the highest negative rate of July, with -0.52%. It was the third consecutive month of decrease in the group, which in May recorded -0.58%, and in June, -0.46%. "It could be related with the low demand to the pandemic" says Mr. Kislanov. The other groups stood between the drop of 0.12% in Education and the rise of 0.51% in Communication.

Prices rise in all the 16 areas surveyed

As far as regional incenses are concerned, all 16 areas surveyed had price rise in July. The lowest index stood with the Metropolitan Area of Vitória (0.21%), especially due to potato prices (-38.28%) and tomato prices (-21.19%). Conversely, the highest result came from the municipality of Rio Branco (0.75%), mainly due to the price rise in gasoline (7.04%).

The IPCA has been calculated by the IBGE since 1980. It refers to households with monthly income of 1 to 40 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. For the calculation of the index prices collected from July 1 to 28 of 2020 (reference) were compared to those of May 29 to June 30 of 2020 (base).

July INPC is 0.44%, also the biggest for the month since 2016

The IBGE also released today (7) the National Consumer Price Index - INPC of July, which presented increase of 0.44%, also the biggest result for a month of July since 2016, when the index was of 0.64%. In the year the cumulative change is of 0.80%, and in the last 12 months, the index presented increase of 2.69% In July 2019, the rate was 0.10%.

Food products presented a high of 0.14%, whereas non-food products increased 0.53%. The 16 areas surveyed recorded increase, with the biggest one in the municipality of Rio Branco (0.83%), mainly due to the high in gasoline (7.04%) and meat prices (4.64%). Conversely, the lowest index stood with the Metropolitan Area of Rio de Janeiro (0.26%) especially due to the decreases in the prices of potatoes (-29.37%) and tomatoes (-28.12%).

The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income of 01 to 05 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. For the calculation of the index prices collected from July 1 to 28 of 2020 (reference) were compared to those of May 29 to June 30 of 2020 (base).

Due to the pandemic , the IBGE has suspended, on March 18, the face-to-face price collection at the purchase points. As of this date, prices began being collected through other means, such as surveys on Internet sites, by phone or email.