The Extended National Consumer Price Index (IPCA) of August changed by 0.28%, 0.25 percentage points below the July rate (0.53%).

The Extended National Consumer Price Index (IPCA) of August changed by 0.28%, 0.25 percentage points below the July rate (0.53%). With this result, the figure accumulated in the year was 4.48%, whereas in the same period last year it was 2.80%. The change of the last 12 months was 6.17%, below the 6.37% of the immediately previous 12 months. In August 2007, the rate was 0.47%.

The group Food products and beverages was the main responsible for the decrease of rhythm of IPCA from July to August. After the hike of 1.05% in July, food products faced negative change of 0.18% in August. The price of most products fell from one month to the other, especially tomatoes (from 10.59% to -36.91%), potatoes (from -6.40% to -6.55%) and beans (called mulatinho beans, from -2.12% to -6.46%).  

The fall of prices of food products, which occurred in August, encompassed most of the areas surveyed. Recife (-0.83%) had the main negative change. The results of the group by area are shown below:

In spite of the August result and even facing decrease in the month, the group of food products accumulated 9.58% in the year, extremely above the same period last year, when it was 6.73%. Non-food products increased a little more from one month to the other: from 0.38% to 0.42%, considering the readjustments of important items with controlled or regulated prices.

The liter of gasoline became 0.25% cheaper in August, after the hike observed in July (0.59%). There was decrease in most of the areas surveyed, especially in Curitiba (-4.72%). Only Goiânia (6.10%) had significant increase. From July to August, the results of alcohol (from 1.89% to 0.43%) and of interstate buses (from 8.38% to -0.63%) contributed to the stability of the group transportation (from 0.46% to 0.06%).

Medicines, by changing from 0.37% in July to -0.41% in August, were the main responsible for the increase of the rate of the group health and personal care (from 0.47% to 0.32%).

Among the items which affected the monthly rate, the main one was fixed telephony (from 0.62% to 2.27%), which accounted for 0.08 percentage points in the composition of August’s IPCA and reflected the readjustment authorized by Anatel (National Agency of Telecommunications) in the end of July. Besides telephony, there was also rise of electricity (from 0.93% to 1.03%), as a consequence of the performance of Belém (16.90%), which had a readjustment of 19% on August 07, and of São Paulo (2.71%), with readjustment of 8.63% on July 04. Both readjustments occurred together with increases in the contribution of Pis/Pasep/Cofins. Water and sewage fares also rose from 0.79% in July to 1.57% in August, due to the readjustment of 13%, of August 1, in the rates of Rio de Janeiro (11.93%).

Other highlights with increase were apparel (from -0.03% to 0.39%), cigarettes (from 0.09% to 1.35%), hair care services (from -0.48% to 1.47%), courses in general such as language and computer science (from 0.01% to 1.64%), car pieces and accessories (from 0.57% to 1.65%).

Among the areas surveyed, Belém (0.79%) had the highest hike, mainly due to the electricity (16.80%) and the rise of food products (0.19%). The lowest result was that of the metropolitan area of Curitiba (-0.22%), where the prices of gasoline and the liter of alcohol became 4.72% and 5.81% lower, respectively.  

To calculate the index of the month, prices collected from July 30 to August 27 (reference period) were compared to those charged from July 01 to July 29 (base period). IPCA has been calculated by 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. 

INPC of August was 0.21%

The National Consumer price Index (INPC) changed by 0.21% in August, being below the July figure (0.58%) by 0.37 percentage points. The index accumulated in the year was 5.09%, above the rate of 3.13% relative to the same period last year. In the last 12 months the rate was 7.15%, below the 7.56% of the immediately previous 12 months. In August 2007, the INPC was 0.59%.

In August, food products changed by -0.42% and non-food products, by 0.49%. In July, the results were 1.09% and 0.36%, respectively.

Similarly to what occurred to IPCA, the metropolitan area of Belém (0.69%) had the highest result, mainly due to electricity (16.93%). The lowest rate was that of the metropolitan area of Salvador (-0.14%).

To calculate the index of the month, prices collected from July 30 to August 27 (reference period) were compared to those charged from July 01 to July 29 (base period). INPC has been calculated by IBGE since 1980 and it refers to families with monetary income, from any source, ranging from 1 to 6 minimum wages.  It covers nine metropolitan areas of the country, besides the municipality of Goiânia and Brasília.