The Extended National Consumer Price Index (IPCA) of July increased by 0.53%, 0.21 percentage points below the rate of June (0.74%).  With this result, the index accumulated in the year was 4.19%, while in the same period of the previous year it had been 2.32%.  In the last 12 months, the rate increased to 6.37%, also above the value of 6.06% of the 12 immediately previous months.  In July 2007, the rate had been 0.24%.

The group food products and beverages, which had been presenting increasing results in the last months, had a lower increase.  Changing from a rate of 2.11% in June to 1.05% in July, food products had a contribution of 0.24 percentage points, representing, even so, almost half of the IPCA of the month.

The majority of food products showed a lower growth in the prices from one month to the other one.   Even with the reduction in the rate, meats (from 6.91% in June to 4.35% in July) once more brought the major individual contribution of the month: 0.09 percentage points.  Following came meals consumed outside home (from 1.42% to 1.77%), with 0.07 percentage points.

In July, some food products registered even negative changes in prices.  For example rice, from a hike of 9.90% in June, changed to a decrease of 0.51%.  Besides it, other important food products had negative rates, such as wheat flour (from 2.37% in June to -1.75% in July) and bread rolls (from 1.32% to -0.11%).

The reduction in the rate of growth of food products which occurred from June to July only did not reach the metropolitan area of Belém, where there was hike of 1.31% in July, compared to 0.86% in the previous month.

Even with the deceleration of July, the group food products accumulated hike of 9.78% in the year, considerably above the value of the same period of 2007 (5.26%).

Regarding non-food products they increased a little bit more, from 0.34% in June to 0.38% in July, as a result of readjustment in important items with administered or controlled prices.

Among the nine groups which form the IPCA, including food products, only three had increase in the price variation from June to July: housing (from 0.26% to 0.60%), transportation (from 0.26% to 0.46%) and  communication (from 0.29% to 0.36%).

The tariffs of inter-state buses, with an average readjustment of 6% since July 1, changed by 8.38% and brought the third major contribution to the IPCA of the month: 0.03 percentage points.  In the municipality of Goiânia, the tariffs reached 21.57%.  Also in the group transportation (0.46%), stood out the hikes of toll (8.19%), alcohol (1.89%), repair of automobile (1.22%) and gasoline (0.59%).

In the expenses with housing (0.60%), the main influences came from the accounts of electricity, with hike of 0.93%.  It is worth mentioning  that, although the tariffs of São Paulo were readjusted in 8.63% in July 4, a reduction in the contribution to the Pis/Pasep/Cofins (federal taxes) led the electricity accounts to an average increase of 2.50% in that metropolitan area.  In the group also stood out the variation of 0.79% in the water and sewage account and of 0.58% in residential rents.

Regarding the expenses with communication (0.36%), the hike was caused by authorized adjustments by Anatel (National Agency of Telecommunications) in the services of fixed telephony, in the last week of July, which led to a variation of 0.62% in this item.

Among the surveyed areas, Belém (1.01%) had the major hike due mainly to the following results:  water and sewage account (11.71%), due to the readjustment authorized by the Cosanpa (Sanitation Company of Pará) in July 1; electricity (5.42%), due to the increase in the contribution to the Pis/Pasep/Cofins (federal taxes); and inter-municipal buses (7.73%), showing the readjustment authorized in July 14.

The lowest result was observed in the metropolitan area of Recife (0.13%), the only one to present decrease in the prices of food products (-0.10%).  

The IPCA is calculated by the IBGE since 1980 and it refers to families with monetary income, from any source, ranging from 1 to 40 minimum wages.  It covers nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília.  To calculate the index of the month, prices collected from July 1 to 29 (reference period) were compared to those charged from May 31 to June 30 (base period).

In July, INPC increased by 0.58%

The National Consumer Price Index (INPC) increased by 0.58% in July, below the result of June (0.91%) in 0.33 percentage points.  In the index accumulated in the year, the percentage reached 4.87%, above the rate of 2.53% referent to the same period of 2007.  In the last 12 months the result had been 7.56%, slightly above the value of 7.28% of the 12 immediately previous months.  In July 2007, the INPC had been 0.32%.

Food products increased by 1.09% in July, while non-food products increased by 0.36%.  In June, the results for these groups had been 2.38% and 0.28%, respectively.

Similarly as it had occurred in relation to the IPCA, the metropolitan area of Belém (1.00%) had the major hike in the INPC, due mainly to the increases in the water and sewage account (11.71%); electricity (5.51%); and inter-municipal buses (7.73%).  The lowest result came from Recife (0.06%), only area to register decrease in the prices of food products (-0.09%).

The INPC is calculated by the IBGE since 1979, it refers to families headed by a salaried worker, with monetary income ranging from one to six minimum salaries.  It covers nine metropolitan areas, besides the municipality of Goiânia and Brasília.  To calculate the index of the month, prices collected from July 1 to 29 (reference period) were compared to those charged from May 31 to June 30 (base period).