Alcohol and gasoline accounted for 0.18 percentage points of June's IPCA  

The Extended Consumer Price Index – IPCA was -0.21% in June, less than in May (0.10%). The first semester of the year ended with a rate of 1.54%, a result inferior to that of the same period last year (3.16%). In the last 12 months, the rate accumulated was 4.03%, also

below that of the immediately previous 12 months (4.23%). In June 2005 the index was

-0.02%.  

The decrease of the rate from one month to the other is mainly a consequence of the fall of prices of alcohol, whose contribution was -0.11 percentage points. The price of the liter of alcohol was 8.77% lower, as a result of a bigger offer of sugarcane and of the smaller demand for this product.  Gasoline, with 20% of alcohol in its composition, became 1.60% cheaper and represented the second lowest individual contribution this month (0.07 percentage points). The table below shows several monthly changes for gasoline and alcohol in 2005 and this year.

Also contributed to the reduction of the index from one month to the other: apparel

(from 0.90% to 0.59%) and medicines (from 1.41% to 0.21%). Non-food

products changed by 0.10%, less than in May (0.14%).

The result of food products was -0.61%, after a rate of almos zero in May

(-0.03%). In this group, despite the rise of few products, there were two highlights: chicken (from 8.42% to 4.60%) and French bread (from -0.64% to 1.29%).

With reference to regional indices, only Recife (0.21%) and Belo Horizonte (0.15%) did not have deflation. Brasília (-0.69%) had the lowest result.

The prices for the calculation of IPCA were collected between May 30 and June 27

(reference). They were compared to prices in effect between April 28 and May 29 (base).

The IPCA has been calculated by IBGE since 1980, and it refers to families with monetary income, from any source, ranging from 01 to 40 minimum wages. It includes nine

metropolitan areas of the country, besides the municipality of Goiânia and Brasília.

  INPC was -0.07% in June

The National Consumer Price Index – INPC was -0.07% in June, a result inferior   to that of May (0.13%). The result accumulated in the year was 1.06%, lower than in the same period of the previous year (3.28%). In the last 12 months, the rate was 2.79%, similar to the 2.75% relative to the immediately previous 12 months. In June 2005 the index was -0.11%.

In the INPC this month, food products had a negative change of -0.42%, whereas non-food product, rose by 0.07%

Concerning indexes by area, only Recife (0.25%), Belo Horizonte (0.21%) and Porto Alegre (0.14%) did not have deflation. The lowest result, with deflation, was registered in Fortaleza (-0.42%).

In order to calculate this monthly index, prices collected between May 30 and June 27 (reference) were compared to those in effect between April 28 and May 29 (base). The INPC has been calculated by IBGE since 1979. It refers to families whose monetary income, from any source, ranges from 1 to 8 minimum salaries with a salaried worker as head of the household. The index encompasses nine metropolitan areas in the country, besides Brasília and the municipality of Goiânia.

Note: According to what was informed in December 2005, the calculation of the Extended Consumer Price Index – IPCA and of the National Consumer Price Index – INPC of  July will include the results relative to expenses from the Consumer Expenditure Survey – POF,

which was conducted from July 2002 to August 2003. The INPC and the IPCA results for

July 2006, based on prices collected between June 28 and July 28 and to be released on

August 11, will be the first ones to use the new weighing structure. See technical note (01/2006), with all the information about Updating of Weighing Structures from POF 2002-2003, on the IBGE web site (www.ibge.gov.br), clicking on “Destaques” (available only in

Portuguese).