The Extended National Consumer Price Index - IPCA stayed at 1.26% in June, the highest rate for June since 1995 (2.26%) and 0.86 percentage points (p.p.) above the rate of 0.40% registered in May. This was the first time that the index stood above 1.00% since January 2016 (1.27%).

The cumulative index in the year (2.60%) stayed above that recorded in the same period last year (1.18%). The cumulative rate over the last 12 months rose to 4.39%, whereas it had posted 2.86% in the 12 immediately previous months. The rate hit -0.23% in June 2017. The support material of the IPCA is on the right side of this page.

Among the nine groups of products and services surveyed, only Wearing apparel (-0.16%) registered a deflation in June, whereas the other varied between 0.00% (Communication) and 2.48% (Housing). Concentrating about 60% of the household expenditures, the groups of Food and beverages (2.03%), Housing (2.48%) and Transportation (1.58%) were those that mostly influenced the June IPCA, impacting 1.18 p.p. or nearly 93% of the index.

Food and beverages strongly accelerated between May (0.32%) and June (2.03%), varying from 0.81% in the metropolitan area of Belém and 2.87% in Curitiba. That group did not record rates above 2.00% since January 2016 (2.28%) and, for June, since 2008 (2.11%). The rise in June was a result of the truckers strike that took place in the end of May, which also impacted on the group of Transportation (1.58%).

The group of food for consumption at home increased 3.09% after changing 0.36% in May. The major rises were in potatoes (from 17.51% in May to 17.16% in June), long-life milk (from 2.65% in May to 15.63% in June), whole chicken (from -0.99% in May to 8.02% in June) and meat (from -0.38% in May to 4.60% in June).

In the group of Housing (2.48%), the highlight was electricity, which rose 7.93%, virtually twice the rate of 3.53% in May, and the biggest individual impact this month (0.29 p.p.). As of June 1st, the red tariff flag level 2 was in force, which added R$0.05 to each kWh consumed. In addition, the following areas surveyed suffered adjustments in the electricity fare:

Piped gas increased 2.37% due to the adjustment of 1.87% in the fares in Rio de Janeiro (0.17%), in force since May 1st, and of 3.35% in the fares of São Paulo (6.13%), in force since May 31. Having risen 4.08% and impacted 0.05 p.p., bottled gas varied between -0.14% in the metropolitan area of Fortaleza and 12.58% in Campo Grande. The rise of 1.10% in the rate of water and sewage also stood out, influenced by the adjustments in Curitiba (5.12%), Salvador (4.09%), São Paulo (3.50%) and Recife (2.78%).

In Transportation (1.58%), gasoline (5.00% and 0.22 p.p.) and ethanol (4.22% and 0.04 p.p.) contributed with about 21% of the IPCA in June. The drops of 5.66% in diesel fuel and of 2.05% in airfare did not exert a significant impact on the index. Altogether, the two items influenced -0.02 p.p.

Still in Transportation, the change of 0.42% in urban bus was due to the adjustment of 9.72% in the fare in Rio de Janeiro (2.22%), in force since June 21. In Porto Alegre (5.64%), intercity bus rose 0.66%, due to the average adjustment of 8.94% in the fare, in force since June 17. In São Paulo (0.50%), the adjustment was of 4.50%, in force since June 18.

The highest index was registered in the metropolitan area of Belo Horizonte (1.86%). Electricity changed 21.78% in that region, due to the adjustment of 18.53% in the fare, in force since May 28, coupled with the additional charge of R$0.05 for each kWh consumed, in force with the red tariff flag level 2 since June. The rises of 6.66% in gasoline and of 23.50% in long-life milk also stood out. The lowest index was recorded in the metropolitan area of Belém (0.69%), due to the drops in fish and related items (-4.18%) and meals away from home (-1.45%).

The IPCA has been calculated by IBGE since 1980. It refers to households with monthly income of 1 to 40 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides Brasília and the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju.

INPC rises 1.43% in June

The National Consumer Price Index - INPC changed 1.43% in June, the highest rise for June since 1995 (2.18%), standing 1,00 p.p. above the rate of 0.43% of May. This was the first time that the index stood above 1.00% since January 2016 (1.51%). The cumulative index in the year stayed at 2.57%, above the rate of 1.12% registered in the same period last year. The index stayed at 3.53% in the last 12 months, well above the rate of 1.76% of the immediately previous 12 months. The rate hit -0.30% in June 2017.

Food products rose 2.24% in June, while the rise was of 0.29% in the previous month. Non-food products increased 1.08%, while they changed 0.49% in May.

The highest index was registered in the metropolitan area of Belo Horizonte (2.12%). Electricity changed 21.70% in that region, due to the adjustment of 18.53% in the fare, in force since May 28, coupled with the additional charge of R$0.05 for each kWh consumed, in force with the red tariff flag level 2 since June. The rises of 6.66% in gasoline and of 23.50% in long-life milk also stood out. The lowest index was recorded in the metropolitan area of Belém (0.71%), due to the drops in fish and related items (-4.46%) and meals away from home (-1.45%).

The INPC has been calculated by IBGE since 1979. It refers to households with monthly income of 1 to 5 minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in Brazil, besides Brasília and the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís and Aracaju.