IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. In order to measure the index of the month, the prices collected from May 28 to June 28, 2011 (reference) were compared with the ones collected from April 29 to May 27, 2011 (base).

INPC changed by 0.22% in June

The National Consumer Price Index (INPC) recorded a change of 0.22% in June, being 0.35 percentage points below the may result (0.57%). As a consequence, the index accumulated in the first six months of the year was 3.70%, above the rate of 3.38% relative to the same period in 2010. Considering the last 12 months, the index was 6.80%, also higher than that of the immediately previous 12 months (6.44%). In June 2010, INPC had been -0.11%.

Food products recorded a change of -0.29% in June, whereas non-food products rose 0.45%. In May, results had been 0.58% and 0.57%, respectively.

The highest index by area was that of Recife (0.37%) where food product (0.17%) had the highest rate, affected by food consumed out of the household (1.54%). The lowest index was that of Brasília (-0.08%), as shown in the table below.

INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to six minimum wages, with a salaried head of the household, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. In order to measure the index of the month, the prices collected from May 28 to June 28, 2011 (reference) were compared with the ones collected from April 29 to May 27, 2011 (base).

The Extended National Consumer Price Index (IPCA) of June was 0.15%, significantly lower than in May (0.47%), recording a difference of 0.32 percentage points. As a result, the first semester of the year ended with a rate 3.87% above the 3.09% relative to the same period in 2010. Considering the last 12 months, the index was 6.71% higher than that of the immediately previous 12 months (6.55%). In 2010, prices had remained stable in June, and IPCA recorded a rate of zero percent.

The significant reduction of the IPCA increase rate from May to June can be seen, to a great extent, as a result of the deflation of food products and beverages. This group faced a change from 0.63% in May to -0.26% in June, together with the even more significant decrease observed in transportation, which had been -0.24% in May and, in June, recorded -0.61%.

Several food products became cheaper from one month to the other; the main highlights were: potatoes (from 6.02% in May to -11.38% in June) and carrots (from -9.30% to -16.31%). Even with the hike of food products, several items in this group have recorded deceleration of the increase rate from one month to the other, such as cheese (from 1.90% to 1.05% in June), yogurt (from 2.07% to 1.01%), powdered milk (from 1.60% to 0.62%) and refined sugar (from 1.18% to 0.50%).

Among non-food products, there was a change of 0.28% in June, versus 0.42% in May.

In transportation, the liter of gasoline, which had changed by 0.85% in May had a rate of -3.94% in June. It was in the leadership with the main impacts that caused reduction of IPCA, with -0.17 percentage points. The second item in this group was ethanol, which had recorded a rate of 11.34% in May and, in June, remained on a downward trend (-8.84%). Together, the prices of fuels fell by 4.25% in June, leading to an impact of -0.20 percentage points.

With the fall of fuel prices, the group transportation recorded a change of -0.61%, in spite of the hike of airfares (from -11.57% in May to 12.85% in June), the item which accounted for the main impact in June (0.04 percentage points).

Also regarding transportation, it is important to highlight: urban bus fares, which rose 0.79% in June, as a result of the changes in buses of Rio de Janeiro (1.21%); Belém (4.19%); and Goiânia (8.23%). Besides, used cars recorded price rise (from -1.26% in May to 0.43% in June).

The group housing also faced deceleration, from 0.97% in May to 0.58% in June. That result is due to items that recorded rise at a lower rhythm, such as water and sewage services (from 2.32% in May to 0.08%), residential rents (from 0.95% to 0.84%), condominium fees (from 1.01% to 0.92%) and electricity (from 0.87% to 0.45%).

Personal expenses (from 0.72% in May to 0.67% in June) also faced deceleration, mainly due to the salaries of domestic workers (from 1.14% to 0.33%). In the group health and personal care, the reduction of the rhythm of increase, from 0.73% in May to 0.67% in June,  resulted mainly from medicines, which have not reflected the price readjustment since the end of March. Its rate changed from 1.20% in May to 0.47% in June.

The biggest change in a group was that of apparel (from 1.19% in May to 1.25% in June), being the main highlight men’s apparel (from 1.38% to 1.54%). In household articles (from 0.09% in May to 0.42% in June), the hike resulted from the contribution of furniture (from 0.16% to 0.35%) and household appliances (from -0.09% to 0.81%).

Among the indexes by area, the highest one came from Recife (0.35%), where the group food products and beverages (0.22%) recorded the highest rate, due to meals food consumed out of the household (1.50%). Curitiba (-0.15%) recorded the lowest result, being mainly affected by the fall of fuel prices (-5.99%), what represented impact of -0.44 percentage points over the index of the area, as shown in the table below: