The Extended Consumer Price Index - IPCA in July changed 0.91% and registered 0.20 percentage points above June’s IPCA (0.71%). With July’s result, the IPCA accumulated 4.42% in the year, below the 6.85% of the same period in 2003. In the last twelve months, the index remained at 6.81%, above the 6.06% that accrued in the previous twelve months. The IPCA varied 0.20% in July 2003.

Pressured by tariff readjustments in São Paulo and Curitiba, electric energy, with 3.67%, was the item that exerted the main impact on the month, 0.17 percentage points. The fixed telephony, readjusted in all regions, followed, with an increase of 4.88% in accounts and in impact of 0.16 points.

Gasoline

prices had a high of 2.46% at gas stations, reflecting part of the readjustment of 10.8% that took place in distributors in June. With alcohol fuel, as a result of the passing on of increases that resulted from the valuation of the sugarcane prices, the high was of 2.61%.

Expenses with food increased 0.67%, with a highlight for pasteurized milk, whose high of 4.24% is attributed to the period between harvests. The prices for its derivatives also increased; mozzarella cheese (3.66%), prato cheese (2.80%) and powdered milk (1.81%). English potatoes (10.61%), refined sugar (7.57%), black beans (6.21%), wheat flour (3.28%) and french buns (1.66%) are products that also stood-out. In contrast to the highs, a decrease for some products was registered as was the case of soy oil (-4.28%), vegetables (-3.91%), carioca beans (-2.64%) and rice (-1.72%).

Due to the concentration of increases in fuel, fixed telephony, electric energy and food prices, important in the consumer expenses, July’s index was the highest in the year. These items, together, were responsible for 0.60 percentage points, which represented 66% of the IPCA’s result in the month.

The IPCA is calculated by the IBGE since 1980, and refers to families with a monetary income of 01 to 40 minimum wages, from any source, and covers nine metropolitan areas in the Country, in addition to the municipal district of Goiânia and Brasília. The comparison of prices collected between June 29th and July 28th (reference) with prices valid between May 26th and June 28th (base) was used to calculate the index.

Regional indexes

The greater regional index was that of São Paulo (1.19%) mainly due to electric energy (10.87%), responsible for 0.43 percentage points of the region’s result. But other items registered above the national average, with a highlight for kitchen gas (1.93%) and gasoline (3.39%). The lowest index was registered in Belém (0.24%), where food represented a decrease of 1.07%.

July INPC was of 0.73%

The National Consumer Price Index - INPC changed 0.73% in July and registered 0.23 percentage point above June’s 0.50%. With this, the INPC accumulated 3.89% in the year, below the 7.88% of the same period in 2003. In the last twelve months, the rate registered at 6.30%, above the result for the previous twelve months (5.57%). The INPC of June 2003 was of 0.04%.

Food prices increased 0.53%, a little higher than the rate of 0.48% registered in June. Non-foods changed by 0.82%, a result that is greater than that of June, 0.51%.

The INPC has been calculated by the IBGE since 1979 and refers to families with monetary earnings of 01 to 08 minimum wages, from the wage earning head of the household, and covers nine metropolitan areas in the country, in addition to the municipal district of Goiânia and Brasília. The comparison of prices collected between June 29th and July 28th (reference) with prices valid between May 26th and June 28th (base) was used to calculate the index.

The highest regional index was registered in São Paulo (1.22%). Belém (-0.08%) remained with the lowest result.

The following table includes the regional indexes for the last two months.