The Extended National Consumer Price Index-15 (IPCA-15) changed 0.47% in June, below 0.11 percentage points in relation to the rate of May (0.58%). As a result, the IPCA-E - the cumulative IPCA-15 - stood at 1.84%, above the result of 1.36% in the same quarter of 2013. The rate stayed at 3.99% in the first semester of 2014, above that of the same period in 2013 (3.45%). In the cumulative index over the last 12 months, the IPCA-15 stood at 6.41%, above the 6.31% index of the preceding 12 months. In June 2013, the rate was at 0.38%.
More information on the IPCA-15 at www.ibge.gov.br/english/estatistica/indicadores/precos/ipca15/defaultipca15.shtm.

The groups of Food and beverages (from 0.88% in May to 0.21% in June) and Housing (from 1.19% to 0.29%) were the main groups responsible for the decline of the IPCA-15 in June. The results of the groups of products and services surveyed are shown in the following table:

A number of food items at home stood out for their declining figures: potatoes (-16.35%), cassava flour (-11.67%), carrots (-5.05%), green vegetables
(-4.69%), fruit (-3.44%) and carioca beans (-3.37%). As a result, food at home fell 0.23%. Conversely, food away from home rose 1.06%.

The decrease in Housing (from 1.19% in May to 0.29% in June) was influenced by the metropolitan area of São Paulo, where this group changed -1.07%. This change was due to water and sewage fees, which dropped 18.36%, as a result of the Incentive Plan for Reduction of Water Consumption, approved by resolution ARSEP no. 469, of February 3, 2014 and extended by resolution ARSEP no. 480, of March 31, 2014. The objective of this program is to apply a discount of 30% to those water and sewage consumers who decrease the monthly consumption by 20%. Like São Paulo´s figure, the overall water and sewage fees changed -4.02% in June.

Other items related to Housing also registered lower rates from one month to the other: manpower for small repairs (from 0.66% in May to 0.34% in June) and electricity (from 3.76% to 1.32%).

The group of Health and Personal Care (from 1.20% in May to 0.67% in June) also contributed to the reduction of the IPCA-15 in June, mainly due to medicines, which changed from 2.10% to 0.65%, reflecting the complementary part of the price adjustment in force since March 31. The prices were adjusted from 2.70% to 6.31%, depending on the classification of the medicine.

Under the influence of the bigger demand due to the World Cup, airfare stood out by rising 22.15%, exerting the highest impact on the June´s index: 0.09 percentage points. The change in Salvador reached 37.39%, followed by Goiânia (33.87%) and Rio de Janeiro (33.53%). The lowest figure was recorded in Belém: 4.13%. As a result, the increased prices of airfare coupled with urban bus fare (1.05%) and car repair (1.23%) made the group of Transportation change from -0.33% in May to 0.50% in June. Still considering the group of Transportation, fuel (-0.20% in May to -0.90%  in June) prices remained falling. Gasoline changed from -0.03% to -0.35% and ethanol, from -1.13% to -3.50%.

As to Personal Expenses (0.51% in May to 1.09% in June), the following items exerted pressure: games of chance (7.80%), reflecting the average adjustment of 26% on May 11, excursion (5.30%) and hotel (4.12%). Expenditures with household articles (from 0.29% to 1.00%) were influenced by item household appliances (2.43%).

Among the regional indexes (table above), the highest rate was registered in Fortaleza (0.80%),  due to the rise of 4.99% in electricity fare, reflecting the price adjustment of 16.55% in force since April 22. The lowest index was recorded in São Paulo (0.21%), due to the reduction of 18.36% in water and sewage fees, as a result of the Incentive Plan for Reduction of Water Consumption, approved by resolution ARSEP no. 469, of February 3, 2014 and extended by resolution ARSEP no. 480, of March 31, 2014. The objective of this program is to apply a discount of 30% to those water and sewage consumers who decrease the monthly consumption by 20%.

In order to estimate IPCA-15, the prices collected from May 15 to June 11 (reference) were compared with the ones in force from April 12 to May 14 (base). The indicator refers to families with monthly income of one to forty minimum wages and it encompasses the metropolitan regions of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, and also Brasília and Goiânia. The methodology is the same as the one used for IPCA; the difference lies in the period of price collection and in the geographic coverage.