The Extended National Consumer Price Index (IPCA) changed by 0.52% in July, being 0.17 percentage points above the June rate (0.35%). As a result, the cumulative index in the year reached 4.96%, and was lower than the 6.83% recorded in the same period a year ago. The index of the last twelve months was 8.74%, slightly above the 8.84% relative to the twelve previous months. In July 2015, IPCA had changed by 0.62%.
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With a cumulative increase of 8.79% in the year, the prices of food products increased 1.32% and accounted for the rise of IPCA from June to July, accounting for 0.34 pp. It is the biggest chnage in a group, as presented in the table below.

With 65% of participation in the IPCA of July, the group Food and Beverages recorded the biggest change for the months of July since 2000, when the hike reached 1.78%. In the metropolitan área of Vitória, the prices rose 2.06%, followed by Goiânia, with 1.85% and Belo Horizonte, with 1.61%.

In July, the leader in the ranking of main individual contributions, with 0.19 p.p., was milk, the prices of which rose 17.58%. In four of the thirteen áreas surveyed, the liter of milk recorded a hike above 20%: Belo Horizonte (23.02%), Rio de Janeiro (22.47%), Brasília (21.76%) e Vitória (21.76%).

Pinto beans was in the 2nd position, with a hike of 32.42% and a contribution of 0.13 pp. In Curitiba and São Paulo, the price of a kilogram increased 45.20% and 43.98%, respectively. Black beans also rose, and became, on average, 41.59% more expensive, whereas red beans, 18.89% more expensive and black-eyed beans, 14.72%.

Besides the significant rises in beans, rice also constitute a highlight, with higher prices in 4.68% on average, reaching 8.27% in Goiânia, 7.49% in Fortaleza and 6.84% in Belém. As a result, rice and beans, a typical Brazilian dish, became more expensive, as other products lsited in the table below:

Among the products with falling prices from one month to the other, the highlights are onions, with -28.37% and potatoes, the prices of which fell 20.00%.

Besides food products, which rose from 0.71% in June to 1.32% in July, other three groups recorded accelerated increase rates over the month: Personal expenses (from 0.35% to 0.70%), Household articles (from 0.26% to 0.53%) and Transportation (from -0.53% to 0.40%). In Transportation (0.40%), the most relevant group in the budget of families, second to food, significant pressure came from the following items:

• Air fares: 19.22%
• Insterstate buses: 8.21%
• Toll: 3.99%
• Intercity buses: 0.81%
• Licensing: 0.79%
• Car repair: 0.58%

The rise of 8.21% in inteerstate bus fares resulted from the readjustment of 9.04%, which came into effect on July 1st.

As for the other groups of products and services surveyed, it observed that Health and Personal care (from 0.83% to 0.61%), Education (from 0.11% to 0.04%) and Communication (from 0.04% to 0.02%) recorded rates in deceleration, whereas Housing (from 0.63% to -0.29%) and Wearing apparel (from 0.32% to -0.38%) recorded decrease.

RegardingHousing (-0.29%), the result was influenced by electricity, with bills 3.04% cheaper from June to July considering the decreases observed in the following areas: Curitiba (-11.17%), with decrease of 13.83% in fares from June 24 on; São Paulo (-5.74%), where the decrease of rates reached 7.30% from July 04 on in one of the concessionaries; and, also, Porto Alegre (-0.29%), with decrease of 7.50% in effect since June 19th. In addition to that, there was decrease of PIS/COFINS shares in tem of the thirteen areas surveyed.

Water and sewage rates, from the group Housing, increased 1.09% from one month to the other, being influenced by the following areas: Goiânia (8.77%), with price adjustment of 9.10% since July 1st; Porto Alegre (5.35%), where the readjustment was 11.45% on the same date; Salvador (1.85%) considering the price adjustment of 9.98% in effect since June 06; Brasília (0.25%), where the price adjustment of 7.95% has been in effect since June 10th.

As for the regional indexes, the top figure was recorded in the metropolitan area of Salvador, with 0.92%, where the liter of gasoline rose 4.86%, of etanol, 4.41%. The lowest index was that of Curitiba, with 0.10%, under the influence of the fall of 11.17% in electricity, reflecting the reduction of 13.83% in effect since June 24. See the table with monthly results by area surveyed.

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of 01 to 40 minimum wages, whatever the source, and it encompasses ten Metropolitan Areas in the country, besides Brasília and the municipalities of Goiânia and Campo Grande. In order to estimate the index of this month, the prices collected from June 30 to July 28, 2016 (reference) were compared with the prices in force from May 31 to June 29, 2016 (base).

INPC was 0.64% i July

The National Consumer Price Index - INPC recorded a change of 0.64%, in July, and was 0.17 percentage points above the rate of June, 0.47%. With this result, the cumulative index in the year was 5.76%, well below the 7.42% of the same period in the previous year. Considering the last twelve months, the index was 9.56%, slightly above the 9.49% relative to the immediately previous twelve months. In July 2015, INPC recorded 0.58%.

Food products recorded a hike of 1.63% in July whereas in June there was a change of 0.83%. The group of non-food products recorded a change of 0.18% in July, below the rate of 0.31% of June.

Among the regional ijndexes, the highest one was that of Goiânia, with 1.03%, influenced by the hike of 2.69% of prices bought for consumption at home, which was above the national average (2.04%), besides the water and sewage rate (8.79%), with readjustment of 9.10% from July 1st on. The smallest index was that of Curitiba, with 0.04%, under the influence of the 11.58% decrease in the item electricity, which reflected the rate (13.83%) of fares in effect since June 24. See below a table with the results by area surveyed.

In order to estimate the index of August, the prices collected from June 30 to July 28, 2016 (reference) were compared with those in force from May 31 to June 29, 2016 (base). INPC has been calculated by IBGE since 1979. It refers to families with monthly income of 01 to 05 minimum wages, whatever the source. It encompasses ten metropolitan areas in the country, besides the municipalities of Goiânia, Campo Grande and Brasília.