More expensive telephone bills accounted for 70% of the IPCA-15 of July

The Extended Consumer Price Index –15 (IPCA-15) changed by 0.11% in July, accumulating 3.62% in the year and 6.84% in the last twelve months (from August 2004 to July 2005). Prices for the calculation of the monthly index were collected from June 14 to July 12 and compared with those in effect from May 13 to June 13. Fixed telephony, with 0.08 percentage point in the month, caused the IPCA of July to be similar to that of June. The expenses related to telephone bills, which accounts for 70% of IPCA increased by 2.41% due to the readjustment of 7.27% on July 3^rd.

Food products

fell by 0.86%, due to the influence of several products. Meats, 1.64% cheaper, were the main negative impact in the month (-0.05 percentage points). The prices of potatoes fell by 26.76%. There were also significant falls observed in the prices of tomatoes (-7.63%), green vegetables (-4.77%), rice (-4.35%), soybeans oil (-3.28%) and refined sugar (-3.10%0. A relevant rise was that of "carioca" beans (4;40%). Food products fell in all the areas surveyed, ranging from –0.62% (Recife) to –1.14% (Porto Alegre). 

The liter of alcohol reached –3.98% and the liter of gasoline –0.50%. Together, the former, with –0.04 percentage points and the latter, with –0.02, accounted for a negative impact of 0.06 percentage points in the month. Other important items in terms of family expenses also fell, for example, articles of personal hygiene (-0.56%), medicines (-0.10%) and bus fares (-0.09%). Concerning bus fares, the results occurred due to a fall of fares (-1.70%), in effect in the metropolitan area of Curitiba since June. In São Paulo, electric energy (-0.88%) has been cheaper since July 4^th. However, rises detected in Recife (4.95%), Goiânia (2.28%) and Curitiba (2.15%) caused an average change of 0.13% for this item. As for apparel, the rate was 0.70%, due, mainly, to the rise of 1.22% of footwear. Apparel changed by 0.45%.

Among the areas, Goiânia registered the highest index (0.63%), followed by Recife (0.56%), where there were rises in the prices of electric energy (2.28% and 4.95%, respectively) and gasoline (3.73% and 4.27%). The lowest results, negative ones, were those from Fortaleza (-0.09%), Belém (-0.02%) and Rio de Janeiro (-0.01%).

0.11

Goiânia

0.63

Recife

0.56

Porto Alegre

0.21

Salvador

0.21

Belo Horizonte

0.17

Curitiba

0.07

São Paulo

0.04

Brasília

0.00

Rio de Janeiro

-0.01

Belém

-0.02

Fortaleza

-0.09

IPCA-15 refers to families whose monetary income ranges from 1 to 40 minimum wages, from any source. It includes 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 as that IPCA. The difference between the two indexes is the period of data collection.