The Extended National Consumer Price Index (IPCA) of July had a change of 0.24% and was below the results obtained in May and in June (0.28%).

The Extended National Consumer Price Index (IPCA) of July had a change of 0.24% and was below the result obtained in May and in June (0.28%). The result accumulated in the year was 2.32%, above the figure of the equivalent period in 2006 (1.73%). In the last twelve months, the accumulated figure was 3.74%, slightly above the 3.69% registered for the immediately previous month. In July 2006, the index was 0.19%.

In July, food products had positive increased of 1.27% and non-food products faced deflation of 0.03% in the month.  Consequently, the contributions of food product and beverages and non-food products to IPCA were, respectively, 0.27 percentage points and -0.03% percentage points.

In the group food products, the highlight was the item milk and its derivatives, due to the result of the item pasteurized milk. Due to its reduced offer, this item rose by 11.31%, contributing, this way, with 0.24 percentage points to the IPCA rate. The table below shows additional information about this item.

Besides food products, the highlights in terms of contribution to the July IPCA were: domestic employees (1.14%), fixed telephones (0.60%), interstate buses (4.78%), cigarettes (0.88%) and health insurance plans (0.69%). The change of 1.14% in salaries of domestic workers shows the influence of the annual readjustment of the minimum wage, which changed from R$ 350,00 to R$ 380,00 on the first day of April.

Fixed telephones, whose fees increased by 0.60%, on average, was mainly influenced by the readjustments of about 2% in the price of subscriptions and of 3% in the fees for calls from fixed to mobile telephones, which went into effect on July 21. There was also contribution from the metropolitan area of Rio de Janeiro, where the bill became 3.76% more expensive, considering that, besides the percentage relative to 0.46% of the readjustment, other percentages were included: 3.30% relative to the impact of the changes implemented in the charging system and the charging policies of local calls, which were converted from pulse to minutes.

The item cigarettes, with 0.88%, was affected by readjustments which happened in three of the eleven metropolitan areas surveyed: São Paulo (2.15%), Porto Alegre (2.37%) and Curitiba (2.37%).

The rise of interstate bus fares was 4.78%, as a consequence of the readjustment of 4.80%, which was authorized by the National Agency of land Transportation (ANTT) and went into effect on July 01^st.

Despite the rise of interstate bus fares, the result of the group transportation was -0.08%. There was negative contribution from fuels, which rose by 0.98%. Due to the offer of sugarcane in the market, the liter of fuel alcohol was 6.96% cheaper in pumps, resulting in the fall of gasoline prices by 0.51%.

However, in spite of the fall of fuel prices, the item electricity got 3.01% cheaper and that was the main factor causing the decrease of IPCA from June to July, with an individual contribution from item  of -0.11 percentage points in the month. The bills in the metropolitan area of São Paulo, which became 9.12% cheaper, were also a highlight in the month. The result was a consequence of this fall of fares by 12.66%, starting on July 4^th.

Considering indexes by area, the highest figure was that obtained in Salvador (0.58%), where several items were above the national average. That was the situation of gasoline (2.05%) and food products (1.58%). The lowest index was that of the metropolitan area of São Paulo (-0.17%), with deflation mainly caused by electricity (with fall by 9.12%), which generated a contribution of -0.30 percentage points to the index of the area. In terms of fixed telephony (0.36%), the bill was also cheap, considering, mainly, the reduction by 18.8% of the cost of a minute in long-distance calls. Besides, other items had results below the national average, for example, apparel (-0.94%).

The table below shows monthly and accumulated results by area surveyed:

The IPCA has been calculated by IBGE since 1980 and it refers to families with monetary income, from any source, ranging from 1 to 40 minimum salaries.  It encompasses nine metropolitan areas of the country, besides the municipalities of Goiânia and Brasília. For the calculation of the index of the month, prices collected from June 28^th to July 27^th (reference) were compared to those charged from May 29^th to June 27^th (base).

INPC changed by 0.32%

The National Consumer Price Index (INPC) changed by 0.32% in July, and had a result very similar to that in June (0.31%). With the June index, the result accumulated in the year was 2.53%, higher the index in 2006 (1.18%). The index accumulated in the last twelve months was 4.19%, also above the rate of 3.97% relative to the immediately previous twelve months. In July 2006, the index was 0.11%.

The July index reflected the rise of food products, 1.36%, whereas non-food products fell by 0.08%.

The INPC has been calculated by IBGE since 1979; it refers to families headed by a salaried worker and with monetary income ranging from 01 to 06 minimum salaries. It encompasses nine metropolitan areas of the country, besides the municipalities of Goiânia and Brasília.  To calculate the index of the month, prices collected in the period June 28^th to July 27^th  (reference) were compared to those charged from May 29^th to June 27^th (base).

The highest index by area was that of Porto Alegre (0.79%). The lowest result was that of São Paulo (-0.18%).

The table below presents the indexes by area surveyed.