The Special Extended National Consumer Price Index  (IPCA-E) accumulated 1.70% in the second quarter. The figure for this month is the lowest since July 2003, a consequence of growth deceleration, fall in the prices of some products and irrelevant readjustments of controlled items.

The Extended Consumer Price Index-15 (IPCA-15) changed by 0.12% in June, showing decline in comparison with May (0.83%).The rate is the lowest since July 2003; the index accumulated 3.51% in the year and 7.72% in the last twelve months (from May 2004 to June 2005). Data for the calculation of the month’s index were collected between May 13 and June 13; prices were compared to those in effect between April 14 and May 12.

Most of the items surveyed contributed to results observed this month, because of either growth deceleration or fall in prices – as occurred with fuel alcohol. Being responsible for the main negative impacts this month (-0.10 percentage point), the liter of alcohol was 9.51% cheaper, falling by 17.78% in Curitiba, for instance. The price of this product only rose in Belém (1.50%). The liter of gasoline changed by –1.29%. Goiânia was the area where prices fell (-4.97%); differently from Salvador and Brasília, where they rose 4.18% and 2.12%, respectively.

Besides fuels, essential food products to families in Brazil became cheaper in June, and the figures for the group food products and beverages fell from 0.84% to 0.04%. The main changes were observed in the prices of the following products: crystallized sugar (-5.10%), green vegetables (-5.00%), fruits (-4.34%), refined sugar (-4.07%), soybeans oil (-3.72%) and rice (-3.66%). Only three of the eleven areas surveyed presented increase in the prices of food: Recife (0.97%), São Paulo (0.33%) and Salvador (0.19%).

With reference to medicines, also great contributors to the national budget, the change was slight 0.16%. It occurred after a rise of 4.16% in May, as consequence of authorized readjustments. The item apparel had a similar performance, 0.71%, due to the rise of 1.56% resulting from the commercialization of articles for the new season. Cleaning articles (from 0.80% to 0.33%) and electrical appliances (from 1.72% to 0.98%) also showed deceleration in the growth rate over the month.

There were not relevant readjustments in the items considered during the data collection period, which contributed to the index of the month. Electric energy changed from 2.85% in May to 0.38% in June, and urban bus fares remained stable, whereas in May, they had risen 2.11%.

Among the areas, the highest IPCA was registered in Salvador (0.71%), mainly due to rises over the national average in electric energy (4.64%), gasoline (4.18%), sewage and water treatment (2.00%), electrical appliances (1.69%) and apparel (1.66%). There was deflation in Curitiba (-0.38%) and Goiânia (-0.14%).

The IPCA-15 refers to families with monthly income ranging from 1 to 40 minimum wages (from whatever source) , and encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, besides Brasília and Goiânia. The methodology applied is the same used for the measure of the IPCA; the difference between both indices lies in the period of data collection.

IPCA-E

See the table below with the results of IPCA-15 for the months of April, May and June and of IPCA-E (Special Extended National Consumer Price Index), information about the index accumulated in the quarter. In the first quarter (January, February, March) IPCA-E was 1.78%.