The Extended National Consumer Price Index-15 (IPCA) changed 0.16% in June and stood below the IPCA-15 of May, which was 0.24%.  Since June 2006, when the index stood at -0.15%, there is no record of lower results for the months of June.

The Special Extended National Consumer Price Index (IPCA-E), which is the cumulative IPCA-15 per quarter, stood at 0.61%, below the 1.78% rate recorded in the same period of 2016.  As a result, the first quarter of the year is at 1,62%, well below the 4.62% relative to the first quarter of the previous year. This result (1.62%) has been the lowest for a first quarter since 1994.

Considering the last 12 months, the index shrank to 3.52%, below the 3.77% rate registered ion the previous 12 months, resulting in the lowest cumulative change in 12 months since June 2007 (3.44%). In June 2016, the rate was 0.40%.

Click here to access the complete publication.

Responsible for almost half of the Brazilians' expenses, the groups food and beverages (-0.47%) and transportation (-0.10%) registered decline in June. The group food products, which contributes with 26% to household expenditures, exerted the sharpest negative impact, of -0.12 percentage points (p.p.), whereas the group transportation, which participates with 18%, stood with -0.02 p.p.

The drop in food products is even more intense when products bought for household consumption are considered. They became, in some cases, 0.83% cheaper. All the surveyed regions recorded decrease, from -0.14% in Goiânia to -1.92% in the Metropolitan area of Fortaleza. The prices of the majority of the products became lower from May to June, with a highlight to tomatoes (-12.41%), fruits (-7.20%), soybean oil (-3.85%), fishery (-2.93%) and rice (-1.70%). However, in food away from home, the average was 0.19%, with the areas presenting changes ranging from the 0.94% decrease of the Metropolitan Areas of  Salvador to the 1.08% high of the Metropolitan Area of Curitiba.

In transportation, the 0.10% price decline was influenced by fuel prices - which fell 0.66%, and especially by ethanol, which reached -2.05%; gasoline stood at -0.37%. In addition, interstate buses (-0.95%) fell too, whereas airfares increased 6.83%.

Among the other groups of products and services surveyed, housing had the highest change (0.93%).

The high of expenses with housing was due to electricity, whose result of 2.24% drove to the contribution of 0.08 p.p. – the highest in the ranking. Despite the change of flags (from red to green), starting on June 1, which represented the reduction of R$3.00 for each 100 kWh consumed, part of the values without the discount were still considered in the index of May, coupled with other movements in specific shares, causing a rise in the bills. Such discounts refer to the devolution of the so-called Reserve Energy Charge (EER) allocated to the Angra III power plant, but which was mistakenly charged in 2016. In Belo Horizonte, there was a 6.03% reduction in the tariffs in force from May 28 on. In Recife there was an increase of 8.87% starting on April 29.

Housing (0.93%) was also influenced by the water and sewage fees (1.57%), condominium fees (1.14%) and  cleaning articles (0.84%). In  water and sewage fees (1.57%), the pressure came from Brasília (1.39%), with increase of 3.10% on June the 1st; from the Metropolitan Area of Salvador (5.00%), where the increase was of 8.80% on June 06; and from the Metropolitan Area of Curitiba (10.80%), whose increase of 8.53% has been on force since May 18. The areas of Salvador and Curitiba were also affected by the review in the bill charging methodology.

Concerning indexes by area, Recife was the Metropolitan Area with the highest result (0.46%), since, among other factors, electricity bills increased 12.71% - well above the national average of 2.24% - as a result of the 8.87% rise in the tariffs in force since April 29. Among the drops, the highlight was the Metropolitan Area of Belo Horizonte (-0.21%) where, besides the 2.33% drop in electricity, food at home (-1.36%) was far from the national average (-0.83%). Fruits stood out, with a decrease of 12.66%.

In order to estimate IPCA-15, the prices collected from May 16 to June 13 of 2017 (reference) were compared with the ones in force from April 13 to May 15 of 2017 (base). The indicator refers to families with monthly income of 1 to 40 minimum wages and it encompasses the Metropolitan Areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, and also Brasília and Goiânia. The methodology is the same as the one used for IPCA; the difference lies in the period of price collection and in the geographic coverage.

Social Communication
June 23, 2017