The National Consumer Price Index (IPCA) of July changed by 0.24% and was 0.12 percentage points below the June rate (0.36%). The index accumulated in 2009 is 2.81%, lower than the 4.19% relative to the same period in 2008. Considering the last 12 months, the result is 4.40%, also below that of the immediately previous 12 months (4.80%). In July 2008, the rate was 0.53%.

The decrease of IPCA from June July was due to the lower change of prices of several consumption items, especially food products, which had a rate of -0.06%, versus increase by 0.70% in June. The fall of food products prices was widespread, and occurred in most of the metropolitan areas surveyed: Salvador (-0.73%), Belém (-0.72%), Porto Alegre (-0.58%), Recife (-0.45%), Belo Horizonte (-0.38%), Rio de Janeiro (-0.29%) and Fortaleza (-0.19%).

Pasteurized milk, which changed from 12.10% to 4.02%, remained contributing to IPCA in July, and accounted for 0.05 percentage points of the index. Other relevant food products in everyday family consumption also faced deceleration or decrease, for example, cheese (from 1.72% in June to 0.86 in July), crystallized sugar (from 3.43% to -0.24%), powdered milk (from 1.48% to 0.33%) and bread (0.28% to -0.44%).

Few food products had price rise in July, being the highlights, in this case: garlic (from 11.75% to 14.64%), “carioca” beans (from 0.76% to 6.46%) and refined sugar (from 0.76% to 1.46%).

Few food products had price rise in July, being the highlights, in this case: garlic (from 11.75% to 14.64%), “carioca” beans (from 0.76% to 6.46%) and refined sugar (from 0.76% to 1.46%). In the group of non-food products, IPCA was 0.33% in July, above the 0.26% of June. This result was affected by prices of electricity, whose rise by 3.25% in the month represented 0.10 percentage points or about 40% of the index and was the main individual contribution. Another important contribution came from the readjustment of 12.90% of fares in the metropolitan area of São Paulo, which went into effect after July 4th. With the rise of electricity, the group housing had biggest change in the month: 1.11%. 

Alcohol also became more expensive in July: the price of a liter of alcohol rose 2.47%, versus fall by 2.02% in June. Affected by the price of alcohol, gasoline got more expensive, 0.68% more per liter. There was also rise of fares of interstate buses (from -0.28% in June to 5.80% in July), as well as of the items car repair (from 0.48% to 1.28%) and furniture (from 2.55% to 1.15%). 

Even so, besides the group food products and beverages, others had lower results than those in June, as seen in the table below: 

The metropolitan area of São Paulo had the highest result, 0.57%, where food products (0.53%) and electricity (11.75%) were the highest ones. The lowest indexes were those of the metropolitan areas of Recife (-0.07%), Rio de Janeiro (-0.05%) and Salvador (-0.02%), as seen below: 

IPCA has been calculated by IBGE since 1980. It refers to families with monthly income ranging from one to forty minimum wages, from whatever source. IPCA encompasses nine metropolitan areas in the country, besides the municipality of Goiânia, and Brasília. To calculate the monthly index, prices collected from June 30 to July 28 (reference) were compared to those charged between May 30 and June 29 (base).

In July, INPC changed by 0.23%

The National Consumer Price Index (INPC) changed by 0.23% in July, and was below the June result (0.42%). The index accumulated in the year is 2.99%, a lower rate than that relative to the same period in 2008 (4.87%). The same way, considering the last 12 months, the result (4.57%) is lower than that of the immediately previous 12 months (4.94%). In July 2008, INPC was 0.58%.

Non- food products, with rise of 0.40% significantly affected IPCA rise in July, since food products changed by -0.17%.

As in IPCA, the metropolitan area of São Paulo, where the rates of food products (0.65%) and electricity (11.68%) were the highest ones, had the highest figures for INPC (0.79%). The lowest indexes were those of the metropolitan areas of Belém (-0.14%) and Salvador (-0.12%), as shown below:

INPC has been calculated by IBGE since 1979. It refers to families with monthly income ranging from one to six minimum wages, with a salaried head of household. IPNC encompasses nine metropolitan areas in the country, besides the municipality of Goiânia, and Brasília. To calculate the monthly index, prices collected from June 30 to July 28 (reference) were compared to those charged between May 30 and June 29 (base).