The Extended National Consumer Price Index (IPCA) of August changed by 0.17%, a figure below that of July (0.25%).  With this result, the IPCA accumulated in the year is now 3.59%, a percentage inferior to the one of the same period last year (5.14%).The index accumulated in the last twelve months was 6.02%, a rate below that of the immediately previous twelve months (6.57%). In August 2004, the monthly rate was 0.69%.

Accounting for over half of the July rate due to the annual price readjustment, fixed telephony was one of the main contributors to the reduction of the index from July to August (from 4.21% to 1.15%).

There were not very significant rises of fuel prices. Fuel alcohol, which has been rising due to the influence of sugar-cane prices, changed by 1.58%, less than in July (2.05%). Gasoline, similarly to the fuel alcohol added to it, fell from 0.87% to 0.34%.

The price of Food Products and Beverages fell for the third consecutive month: from –0.67% in June, to –0.77% in July and –0.73% in August. Within these three months, food products had an acuumulated fall of 2.15% and, in the year, a change of 0.80%.

In August, the price of food products fell in all the areas, except in Belém, where the rate was stable (0.01%). In São Paulo the rate reached –1.01%. Among the products which most influenced this result are: potatoes (-15.99%);  onions (-11.13%); tomatoes (-8.37%); black beans (-6.07%); green vegetables (-6.04%); carioca beans (-3.15%) and milk (-3.02%).

Among the items which presented rising prices from July to August, the main highlights were household employees, representing the major individual contribution in the month (0.06 percentage point), and airplane tickets.  The salaries of household employees changed by 1.86% in August, after 0.90% in July.  Considering the methodology applied, these results reflect the readjustment of the minimum salary in May.  As for airplane tickets, after the rate of  2.84% in July, they became 4.80% more expensive in August. This change is attributed to overall costs.

Other items presented higher rates from one month to the other; water and sewage is the highlight in this case (from 0.21% to 2.39%), bus fares (from –0.22% to 0.36%) and intercity bus fares (from 0.10% to 0.55%).

Indexes by area

Among the areas surveyed, the highest index was measured in Belém (1.83%), where there were significant rises of the prices of water and sewage services (26.54%), electric energy (8.21%) and bus fares (7.83%), with an impact of 1.41 percentage point over the index.  Porto Alegre (-0.05%), on the other hand, was the only area to present a negative result. In this case, the highlights were the falls of prices of medicines (-0.96%), electric energy (-0.66%), food products  (-0.44%) and apparel (-0.38%).

The IPCA has been calculated by IBGE since 1980. It refers to families with monthly income ranging from 01 to 40 minimum salaries, from whatever source, and encompasses nine metropolitan areas, besides the municipalities of Goiânia and Brasília. For the August measure, prices collected from July 28 to August 25 (reference)  were compared with prices in effect June 28 and July 27 (base).

IPCA is stable in August

In August, the Extended National Consumer Price Index (INPC) was 0.00%, similar to the result of July (0.03%).  Due to this stability, the index accumulated in the year was kept at 3.31%, below the rate registered in the same period last year (4.41%). In the last twelve months, the index was 5.01%, a lower figure than tht of the immediately previous twelve months (5.54%). In August 2004, the INPC had a monthly change of 0.50%.

Among the areas surveyed, the highest index was that of Belém (1.83%), whereas Porto Alegre (-0.25%) and São Paulo (-0.26%) had lowest results.

The INPC has been calculated by IBGE since 1979. It refers to families with monthly income ranging from 01 to 08 minimum salaries, with a salary earner as head of the household. It encompasses nine metropolitan areas, besides the municipalities of Goiânia and Brasília. For the August measure, prices collected from July 28 to August 25 (reference)  were compared with prices in effect June 28 and July 27 (base).