IPCA changes -0.09% in August

September 06, 2018 09h00 AM | Last Updated: September 10, 2018 06h19 PM

The Extended National Consumer Price Index - IPCA changed -0.09% in August, below the result of July (0.33%). It was the lowest rate for August since 1998, when the IPCA registered -0.51%. The cumulative index in the year stayed at 2.85%, above the rate of 1.62% recorded in the same period of 2017. The cumulative index over the last 12 months stayed at 4.19%, below the rate of 4.48% recorded in the previous 12 months.  In August 2017, the rate hit 0.19%. The support material of the IPCA is on the right side of this page.

Period RATE
AUGUST 2018 -0.09%
July 2018 0.33%
August 2017 0.19%
Cumulative in the year 2.85%
Cumulative in 12 months 4.19%

Of the nine groups of products and services surveyed, Food and beverages (-0.34%) and Transportation (-1.22%) registered a deflation between July and August.  The other varied between 0.03%, (Communication) and 0.56% (Household articles).

IPCA - Change and Impact by Group - Monthly
Group Change (%)  Impact (p.p.) 
  July August July August
Overall Index 0.33 -0.09 0.33 -0.09
Food and Beverages -0.12 -0.34 -0.03 -0.08
Housing 1.54 0.44 0.24 0.07
Household Articles 0.47 0.56 0.02 0.02
Wearing Apparel -0.60 0.19 -0.03 0.01
Transportation 0.49 -1.22 0.09 -0.23
Health and Personal Care 0.07 0.53 0.01 0.07
Personal Expenses 0.31 0.36 0.03 0.04
Education -0.08 0.25 0.00 0.01
Communication 0.08 0.03 0.00 0.00
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

Having recorded -0.34%, quite close to the February rate (-0.33%), the group of Food and beverages posted a deflation for the second month in a row.

The group of Food for consumption at home also registered a deflation for the second consecutive month (from -0.59% in July to -0.72% in August). A number of important items of the household consumption dropped their prices from one month to the other.

IPCA - Food products - Major drops 
Item Change (%)
July August
Onions -33.50 -22.19
Potatoes -28.14 -11.89
Tomatoes -27.65 -4.84
Cassava flour -1.13 -4.56
Green vegetables -6.91 -4.07
Long-life milk 11.99 -3.48
Garlic 1.93 -3.30
Eggs -2.47 -2.91
Carioca beans -2.67 -2.14
Whole chicken 1.51 -1.65
Meat -1.27 -1.52
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços  
 

On the other hand, the items rice (2.51%), noodles (2.47%), cheese (1.30%), soft drink (0.96%) and fruits (0.60%) rose their prices.

Conversely, Food away from home decelerated between July (0.72%) and August (0.32%), highlighting snack away from home (from 1.40% in July to 0.77% in August) and meals (from 0.39% in July to 0.23% in August).

Having dropped 1.22%, the group of Transportation exerted the major negative impact on the August index (-0.23 percentage points). After rising 44.51% in July, the item airfare stood out, as it registered the lowest change in August (-26.12%), being the major individual impact on the August IPCA (-0.11 p.p.). Fuels (-1.86%) also contributed to the negative change of this group, highlighting ethanol (-4.69%) and gasoline (-1.45%).

Urban bus (0.04%) reflected the adjustment of 14.28% in the fare in Rio Branco (7.24%). in force since July 14.

On the rising side, the groups of Housing (0.44%) and Health and personal care (0.53%) recorded the the biggest positive contribution to the index (0.07 p.p. each).

Having risen 1.54% in July, the rate of 0.44% of the Housing group was influenced by the deceleration of the electricity bills, which changed from 5.33% in July to 0.96% in August. Even so, electricity was the major individual positive impact on the index this month (0.04 p.p.). It should be highlighted that the red tariff flag level 2 remained in force in August, charging an additional R$0.05 per kWh consumed.

The item electricity recorded a deflation in eight out of the 16 areas surveyed, as a result of the reduction in the PIS/COFINS.

The following areas readjusted their electricity fare:

- São Luís (-3.63%). Readjustment of 16.94% as of August 28; Belém (4.37%). Readjustment of 12.00% as of August 7; Vitória (6.23%). Readjustment of 15.98% as of August 7; São Paulo (2.02%). Readjustment of 15.84% in one of the concessionaires as of July 4.

IPCA - Residential electricity
Area Change (%)
August
Vitória 6.23
Belém 4.37
Goiânia 4.24
Belo Horizonte 3.01
Recife 2.93
São Paulo 2.02
Salvador 0.87
Curitiba 0.63
Porto Alegre -0.28
Campo Grande -0.28
Rio Branco -0.56
Aracaju -0.59
Brasília -2.12
Rio de Janeiro -2.91
Fortaleza -3.07
São Luís -3.63
Brazil 0.96
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços 

Still in the group of Housing, the change of 0.99% in the item water and sewage fees was due to the adjustments in the fare of the following areas:

IPCA - Water and sewage fees  
Water and sewage fees
Area Change (%) Adjustment (%) Date
Vitória 1.66 3.89 August 16
Rio de Janeiro 5.22 5.94 August 1
Belo Horizonte 3.25 4.31 August 1
Porto Alegre 0.11 2.15 July 1
Goiânia 0.33 3.37 July 1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços   

Also in the group of Housing, the item piped gas (1.17%) reflected the adjustment of 2.52% in the fare in Rio de Janeiro (2.21%), in force since August 1st.

In Health and personal care (0.53%), the item health plan (0.81%) stood out.

Concerning the regional indexes, the highest one was reported in Goiânia (0.30%), due to the rise of 4.24% in electricity, as a result of the increase of 49.29% in PIS/COFINS, as well as to the change of 2.13% in medicines. The lowest index (-0.72%) was reported in Brasília, where the drops of airfare (-24.79%) and gasoline (-3.11%) stood out.

IPCA - Monthly, annual and 12-month change, by area    
Area Regional Weight (%) Change (%) Cumulative Change (%)
July August Year 12 months
Goiânia 3.59 -0.05 0.30 1.99 5.08
Rio Branco 0.42 0.51 0.26 1.95 1.95
São Paulo 30.67 0.63 0.12 2.90 4.85
Aracaju 0.79 -0.06 0.03 1.66 1.66
Belo Horizonte 10.86 0.18 -0.01 3.38 4.23
Vitória 1.78 0.19 -0.04 2.87 3.70
Recife 4.20 -0.07 -0.09 2.39 2.96
Porto Alegre 8.40 0.05 -0.10 3.45 4.70
Belém 4.23 0.00 -0.12 1.88 2.42
Campo Grande 1.51 -0.37 -0.18 2.03 3.36
Curitiba 7.79 0.28 -0.20 2.64 3.95
Salvador 6.12 0.24 -0.27 2.94 3.48
Fortaleza 2.91 -0.09 -0.28 1.99 2.95
Rio de Janeiro 12.06 0.59 -0.38 3.29 4.35
São Luís 1.87 -0.28 -0.51 1.40 1.40
Brasília 2.80 0.58 -0.72 1.68 3.47
Brazil 100.00 0.33 -0.09 2.85 4.19
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços

 

In order to measure the index of the month the prices collected from July 28 to August 29, 2018 (reference) were compared with the ones in effect from June 28 to July 27, 2018 (base). The IPCA has been calculated by the IBGE since 1980. It refers to households with monthly income of 1 to 40 minimum wages, whatever the source. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

INPC stable in August with rate of 0.00%

The National Consumer Price Index - INPC remained stable in the average prices from July to August, when the rate stayed at 0.00%. The cumulative index in the year stayed at 2.83%, above the rate of 1.27% recorded in the same period last year. The index stayed at 3.64% in the last 12 months, above the rate of 3.61% of the immediately previous 12 months. In August 2017, the rate was -0.03%.

Food products dropped 0.44% in August, whereas the drop had been of 0.20% in the previous month. The group of non-food products changed 0.19%, whereas it recorded 0.44% in July.

Concerning the regional indexes, the highest one was reported in the municipality of Rio Branco (0.63%), due to the adjustment of 14.28% in the urban bus fare (7.24%), in force since July 14. The lowest index (-0.45%) was reported in São Luís, where electricity (-3.51%) stood out, caused by the reduction of 47.33% in PIS/COFINS, as well as only two days of the adjustment in the fare of 16.94%, in force since August 28, were taken into account.

In order to measure the index of the month, the prices collected from July 28 to August 29, 2018 (reference) were compared with the ones in effect from June 28 to July 27, 2018 (base).

The INPC has been calculated by the IBGE since 1979. It refers to households with monthly income of 1 to 5 minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

INPC - Monthly, annual and 12-month change, by area
Area Regional Weight (%) Monthly change (%) Cumulative Change (%)
July August Year 12 months
Rio Branco 0.59 0.64 0.63 2.57 2.57
Goiânia 4.15 -0.03 0.39 1.67 4.73
Vitória 1.83 -0.07 0.30 3.17 3.43
São Paulo 24.24 0.73 0.23 3.18 4.71
Aracaju 1.29 -0.17 0.07 1.42 1.42
Belo Horizonte 10.60 0.10 0.05 3.23 3.73
Porto Alegre 7.38 -0.03 0.01 3.73 4.71
Curitiba 7.29 0.22 -0.01 2.95 3.92
Recife 5.88 -0.16 -0.05 1.88 2.17
Belém 6.44 -0.03 -0.09 1.80 2.06
Salvador 8.75 0.15 -0.13 2.62 2.81
Campo Grande 1.64 -0.36 -0.13 1.93 2.86
Fortaleza 5.42 -0.15 -0.17 1.79 2.39
Rio de Janeiro 9.51 0.75 -0.31 3.94 3.73
Brasília 1.88 0.20 -0.40 1.85 2.82
São Luís 3.11 -0.49 -0.45 1.19 1.19
Brazil 100.00 0.25 0.00 2.83 3.64
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços