The rate was the lowest since June 2003 and remained practically stable, after having grown by 0.49% in May.

The rate was the lowest since June 2003 and remained practically stable, after having grown by 0.49% in May. Food products and beverages were the main cause for the fall of IPCA, which accumulated 3.16% in June and 7.27% in the last twelve months.

The National Extended Consumer Price Index - IPCA of June changed by – 0.02%, indicating that, on average, the prices of consumption items of families remained practically stable, after having increased by 0.49% in May. The rate of – 0.02% was the lowest since june 2003, when IPCA was – 0.15%.

With the result of June, IPCA accumulated 3.16% in the year, a percentage inferior to the figure registered in the same period in 2004, 3.48%. In the last twelve months the index accumulated  7.27%, a percentage inferior to the immediately previous twelve twelve months (8.05%). In June 2004, the monthly rate was 0.71%.

There was generalized deceleration in the growth rates of retail prices, including fall of items which represent the majority of consumers' expenses. IPCA changed from 0.49% to  –0.02% due, mainly, to food products and fuels. Fuel alcohol – responsible for the major negative individual impact in the month (0.09 percentage point) – remained 8.79% cheaper, due to the reduction in the prices of sugar cane and the competition among distribution establishments. None of the surveyed areas registerd growth, and in Curitiba, alcohol fell by 21.42%. Thus, cheaper alcohol and competition caused gasoline to fall by 1.51%, which represents a contribution of – 0.06 percentage point over IPCA, the second lowest rate.

In the group of food products and beverages, the fall by 0.67% is due to the increase of several harvests. Some products, such as potatoes (-18.74%), carrots (-16.89%) and tomatoes (-10.79%) were cheaper than in May. Other products had a significant fall,  for example, green vegetables (-7.79%), soybeans oil (-5.21%), rice (-4.84%) and refined sugar (- 4.69%). There was growth in Recife concerning food products (0.11%); falls were observed in the remaining areas.

Due to repeated sales, hygiene articles also fell in the month of June (-0.63%). The highhlights in this case were toilet paper and toilet soap, whose prices fell by 2.03% and 0.75%, respectively. Besides, medicines fell by 0.10%.

Apparel, being repeatedly on sale, grew by 0.38%, versus a figure of 1.45% in May. The same way, prices of other items such as electrical appliances (from 1.67% to 0.97%) and cleaning articles (from 0.69% to 0.47%) had their monthly growth rate reduced.

The administered items  were not radically readjusted  and bus and light fares remained  stable. In terms of fixed telephony, the readjustment of 7.99% authorized by ANATEL (calls from fixed telephones to mobile telephones) was not applied in some areas, and the average result was 0.73%.

In six of the areas surveyed, there were falls, having the most relevant case occurred  in Curitiba (–0.52%), with the reduction of 21.42% in alcohol and of 8.49% in gasoline. Concerning the five positive rates, the highest ones were observed in Salvador (0.32%) and Goiânia (0.35%).

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 reaches nine metropolitan areas, besides the municipalities of Goiânia and Brasília. In June, prices collected from May 31 to June 27 (reference)  were compared with prices in effect between April 29 and May 30 (base).

INPC was – 0.11% 

The National Consumer Price Index - INPC changed by –0.11% in June and remained below the rate of 0.70% registered in May.

With the result of June, INPC accumulated 3.28% in the year, a little more than the 3.14% registered in the same period in 2004. In the last twelve months, the index accumulated 6.28%, rate inferior to the immediately previous twelve months (6.93%). In June 2004, INPC changed by 0.50%.

The lowest indexes by area were registered in Curitiba (-0.46%) and Brasília (-0.43%). There was growth only in Goiânia (0.28%), Salvador (0.16%) and Fortaleza (0.04%).

INPC has been calculated by IBGE since 1979, and refers to families with monthly income ranging from 01 to 08 minumum salaries,  with a salary-earner as head of the household. It encompasses nine metropolitan areas, beside the municipalities of Goiânia and Brasília.

For the calculation of the index of April,  prices collected from May 31 to June 27 (reference) were compared to those in effect between April 29 to May 30 (base).