Rise of fixed-telephony fares accounted for 60% of July’s IPCA and contributed negatively to the index

The National Extended Consumer Price Index - IPCA of July changed by 0.25%, after the rate of  –0.02% of June. The result for July has caused the index accumulated in the year to be 3.42%, a percentage inferior to the 3.63%, registered in the same period last year. Considering the last twelve months, the index was 6.57% and remained below that of the immediately previous twelve months, 7.27%. In July 2004, the monthly index was 0.91%. The reference period for data collection was from june 28 to July 27, with the base period May 31 – June 27. The survey was conducted in 30 thousand locations and investigated about 400 thousand prices.

Fixed telephony alone, caused an impact of 0.14 percentage point and accounted for about 60% of the month’s IPCA, due to the rise of 4.21% (which partially reflected the authorized price readjustments). The  expenses with fuels also grew. Alcohol was about 2.05% more expensive and gasoline 0.87%. Together, they accounted for 0.06 percentage point of the index. Not all areas influenced the index, only the ones listed below: 

Price of food products falls in the areas  surveyed

 Even with price rises,  July’s IPCA shows the majority of the consumer items did not contribute to the index. Deceleration is observed in retail prices growth rates, including important falls such as those occurred in food products. Once it is harvesting time for several products, food products prices fell by 0.77%.  Meat, 1.85% cheaper, represented the main negative impact  this month (-0.05 percentage point). Potatoes fell by 23.95%, and the same happened to olive oil (-6.71%), tomatoes (-6.19%), black beans (-3.89%), refined sugar (-3.60%), rice (-2.63%), pateurized milk (-2.50%) and soybeans oil (-2.21%). With a relevant rise, the only highlight is “carioca” beans (4.38%). All the surveyed areas presented negative changes in food products, ranging from –0.05% (Goiânia) to –1.16% (Rio de Janeiro).

Prices of other important items of family’s expenses also fell, such as electric enrgy (-0.37%), cooking gas (-0.35%) and bus fares (-0.22%), whose fall was caused by the reduction in fares charged in the metropolitan area of Curitiba since June (-3.88%). In terms of electric energy, bills in São Paulo were 2.47% cheaper in July, which caused the item to show a negative change, despite the fares rises in  Curitiba (5.01%) and Recife (5.06%).

Highest IPCA index registered in Goiânia and the only negative figure in Rio de Janeiro

Among the areas surveyed, the highest index was registered in Goiânia (0.91%), where there were rises in gasoline (6.91%) and alcohol (3.07%) prices. Only Rio de Janeiro (-0.07%) had a negative result. IPCA, calculated by IBGE since 1980, refers to families with monthly income ranging from one to 40 minimum salaries, from whatever source, and encompasses nine metropolitan areas, besides the municipalities of Goiânia and Brasília.

INPC changed by 0.03% in July

The National Consumer Price Index - INPC changed by 0.03% in July, over the rate of –0.11% in June. With the result of July, INPC accumulted 3.31% in the year, less than the 3.89% registered in the same period in 2004. In the last twelve months, the index was 5.54%, a rate inferio to that of the immediately previous twelve months, 6.28%. In July 2004, INPC had registered a monthly change of 0.73%. The lowest regional index was registered in Rio de Janeiro (-0.30%) and the highest in Goiânia (0.54%).

INPC, calculated by IBGE since 1979, refers to families with monthly income ranging from one to eight minumum salaries, being the head of the household a salary-earner. The index encompasses nine metropolitan areas, besides the municipalities of Goiânia and Brasília. For the calculation of July’s index

, prices collected in the period June 28 – July 27 (reference) were compared to those in effect in the period May 31 to June 27 (base).