The Extended National Consumer Price Index (IPCA) of August changed 0.24% and stood above the 0.03% rate registered in July, a difference of 0.21 percentage points.  Including August, the change in the year moved to 3.43%, whereas in the same period a year ago it stood at 3.18%. Considering the last 12 months, the index was at 6.09%, below the 6.27% index of the previous 12 months. In August of 2012 the rate was at 0.41%. The complete publication of the survey can be accessed at https://www.ibge.gov.br/english/estatistica/indicadores/precos/inpc_ipca/defaultinpc.shtm.

Of the nine surveyed groups, six had higher results than those of the previous month.

Food and beverages left behind the 0.33% drop in July and was virtually stable in August, reaching 0.01%. Food at home kept falling, but less intensely, moving from –0.73% to –0.34%, while food away from home moved from 0.45% to 0.67%. Long-life milk (3.75%), though with high rates below July's (5.06%), led the ranking of the month's major impacts, together with meals away from home, which moved from 0.21% to 0.76%. As to the products shrinking this month, onions became 22.84% cheaper, the most significant impact downwards, with –0.04 percentage points.

Just like food, the articles of wearing apparel offset losses from one month to the other, from –0,39% to 0,08%. That was due to the new collection on the market, coupled with the sales of the previous season's collection. Children clothes, which moved from –0.35% in July to 0.72%, were the products with the highest increase in the group.

Conversely transportation (-0.06) had a lower drop in August than in July (–0.66%). Urban bus fares changed –0.20%, whereas, in July, they recorded -3.32%. There were falls in the Metropolitan Areas of Belo Horizonte (-1.85%), Curitiba (-0.39%) and Porto Alegre (-0.36%). Considering the last two months, urban bus fares became 3.51% cheaper. Besides, the falling movement seen in intercity buses, trains and subways ceased, they moved from –1.69%, -4.13% and –4.97%, respectively, to zero (all of them). Ethanol posted the sharpest drop, from –0.55% to –1.16%, whereas gasoline went from –0.23% to –0.15%. Airfares, which increased 0.17% in July, moved to –0.61% in August. Used cars fell even more, from -0.37% to –0.50%, whereas new cars rose from –0.29% to 0.45%.

Household articles posted the highest result of the group, with 0.89%, after registering 0.28% in July. The highlights were house appliances (from 0.13% in July to 1.43% in August), furniture (from 0.22% to 1.22%) and repair of household equipments (from –0.11% to 1.16%).

In health and personal care, increasing from 0.34% in July to 0.45% in August, the highlights were medical and dental care, which came from 0.67% to 1.37%.

Education, which posted a 0.11% change in July, rose to 0.67%. Regular courses changed 0.56%, while other courses (computer, languages, etc.) recorded a high of 1.71%.

In the housing group, the 0,57% change was the same recorded in the previous month, while communication (from 0.20% to 0.02%) and personal  expenses (from 1.13% to 0.39%) reduced their rates. In personal expenses, the reduction can be attributable to the income of the domestic workers, which went to 0.53% after a high of 1.45% in July, as well as the item recreation, whose rate moved from 1.25% in July to 0.80% in August.

Among the regional indexes, the highest came from Brasília (0.46%), where airfares, weighting 2.05% and changing 3.41%, exerted an impact of 0.07 percentage points. Moreover, the item food away from home rose 1.21% and, weighting 9.47%, caused an impact of 0.11 points. The lowest index was seen in Fortaleza (-0.11%), the only region to present deflation, especially due to the 5.21% drop in the electricity bills, reflecting the reduction of 57.22% in the tax rates of PIS/PASEP/COFINS. The result of –0.96% of food at home also contributed to the downfall of the index in that area.

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 estimate the index of the month, the prices collected from July 30 to August 28 of 2013 (reference) were compared with those in force from June 29 to July 29 of 2013 (base).

INPC changed 0.16% in August

The National Consumer Price Index (INPC) recorded a change of 0.16% in August, above July's result (-0.13%). The change in the year is 3.33%, below the rate of 3.46% relative to the same period of 2012. Considering the last 12 months, the index was at 6.07%, below the 6.38% result of the prior twelve months. In August of 2012, INPC was at 0 45%. Food products decreased 0.14% in January, whereas non-food products stood at 0.29%. In July, the results were at –0.40% and 0.01%, respectively.

Among the regional indexes, the highest was registered in Goiânia (0.45%) due to food products (0.45%) and to housing rent (1.81%). The metropolitan areas of Belo Horizonte (-0.10%) and Fortaleza (-0.10%) registered the lowest indexes. Food at home (-1.13%) was the major responsible for the lower result of the index in Belo Horizonte. As to Fortaleza, the lowest change is attributable to the 5.01% drop in the electricity bills, which reflected the reduction of 57.22% in the tax rates of PIS/PASEP/COFINS. The result of –0.88% of food at home also contributed to the drop.

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 family, and it encompasses nine metropolitan areas in the country, besides the municipalities of Goiânia and Brasília. In order to estimate the index of the month, the prices collected from July 30 to August 28 of 2013 (reference) were compared with those in force from June 29 to July 29 of 2013 (base).