IPCA
Inflation accelerates to 0.96%, July’s highest since 2002
August 10, 2021 09h00 AM | Last Updated: August 11, 2021 02h10 PM
Increase in electricity bills had the biggest impact on July’s inflation - Photo: Lícia Rubinstein/ IBGE News AgencyInflation rose to 0.96% in Jly with price increase in electricity bills, resulting in the highest rate for the month since 2002 (1.19%). The indicator accumulates high of 4.76% nin the year and of 8.99% in the last 12 months, above the index accumulated in the previous 12 months. In July 2020, the monthly rate was of 0.36%. Data are from the Extended National Consumer Price Index released today (August 10) by the IBGE.
Of the nine groups of products and services surveyed, eight had highs in July. The biggest change (3.10%) and the greatest change (0.48 pp) came from housing due to the rise in electricity (7.88%), which accelerated over the previous month (1.95%) and recorded the highest individual impact on the index (0.35 pp). The result is due to fee adjustments of 11.38% in São Paulo, of 8.97% in Curitiba (11.34%), and of 9.08% in one of the concessionaires of Porto Alegre (8.02%).
“In addition to price adjustments in some of the areas covered by the index, thre was the 52% increase in the additional value of the red tariff flag of level 2 all over the country. Previously, the rise in that flag used to be nearly of R$ 6.24 for each 100kWh consumed, but, by July, the increase went to R$ 9.49”, explains the survey analyst, Mr. André Filipe Guedes Almeida.
The second highest contribution (0.32 pp) of the month came from transportation (1.52%), driven by airfare, whose prices rose 35.22% after the 5.57% drop in June.
Fuel prices (1.24%) also accelerated over June (0.87%). Gasoline, particularly, had a high of 1.55%, against the 0.69% increase of the previous month, contributing to the third individual impact (0.09 pp) on the monthly index, behind airfares.
The result of food and beverages (0.60% and 0.13 pp) also stood above the one recorded in June (0.43%). Food at home went form 0.33% to 0.78% in July, especially due to the highs in tomatoes (18.65%), chicken pieces (4.28%), long-life milk (3.71%) and meat (0.77%). The negative highlights are onions (-13.51%), potatoes (-12.03%) and rice (-2.35%).
On the other hand, food away from home (0.14%) decelerated over June (0.66%), influenced by snacks (0.16%) and meals (0.04%), whose prices had increased 0.24% and 0.85% in the previous month, respectively.
Only the group health and personal care (-0.65%) had decrease in the period, with the reduction of insurance pans (-1.36% and -0.05 pp). In July, the National Agency for Supplementary Health (ANS) authorized a negative adjustment of -8.19% due to the decreased use of supplementary haelth services during the pandemic.
“It was the first negative adjustment ever authorized by the ANS since its creation. This adjustment includes May 2021 and goes until April 2022, depending on contracts’ terms. Therefore, July IPCA accounted for the shares of May, June and July”, explains Mr. Almeida.
The survey also shows that all areas had inflation in July. The highest index was recorded in the Metropolitan Area of Curitiba (1.60%), influenced by the highs in the prices of airfare (39.92%) and electricity (11.34%). Conversely, the lowest result occurred in Aracaju (0.53%), due to the decrease in the decrease in the prices of voluntary excess (-11.37%) and health insurance plan (-1,47%).
INPC increases 1.02% in July
The National Consumer Price Index (INPC) also accelerated 1.02% in July, standing above June’s result (0,60%). In the year, the indicator accumulates high of 5.01% and, in 12 months, of 9.85%, above the 9.22% accrued in the previous 12 months. In July 2020, the rate had been 0.44%.
Food products increased 0.66% in July, standing above June’s result (0.47%), whereas the non-food products had a high of 1.13%, against the 0.64% recorded in June.
The INPC also recorded highs in all the areas surveyed. The lowest index stood with Rio Branco (0.61%), in which the drops in onion prices (-18.44%) and rice prices (-2.24%) had an impact. Conversely in the Metropolitan Area of Curitiba recorded the highest change (1.82%), influenced by electricity (11.68%) and used cars (3.13%).
IBGE resumes face-to-face price collection
In July, the IBGE intiated the gradual resumption of face-to-face price collection in some establishments, as provided by Ordinance No. 207/2021. Due to the pandemics, since March last year, collection had been being carried out, exclusively, by other means, as web sites, by phone or e-mail.
The IPCA comprises families with income from 1 to 40 minimum wages, wheareas the INPC comprises families with income from 1 to 5 minimum wages, living in the Metropolitan Areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, and also the Federal District and the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju. Please, access the Sidra database.
