The Extended National Consumer Price Index (IPCA) of August changed by 0.11%, and was 0.08 percentage points below the July rate (0.19%). The cumulative change in the year was 2.54% and, in the last 12 months, 3.43%, above the 3.22% registered in the 12 previous months. In August 2018, the rate was -0.09%.

From July to August, there was defleation in three of the nine groups of products and services surveyed. The most significant negative changes came from Food and beverages (-0.35%) and Transportation (-0.39%), which contributed with -0.09 percentage points and -0.07 percentage points, respectively. Besides, the group Health and personal care also recorded decrease (-0.03%), although at a lower level than in the previous month (-0.20%). In terms of increases, a highlight is Housing (1.19%), which accounted for the main impact on the IPCA of August (0.19 p.p.), whose change was close to that of July (1.20%). The other groups ranged between an increase of 0.09% in Comunication and 0.56% in Household articles, as show in the table below.

The decrease in Food and beverages (-0.35%) was mainly due to the group food at home (-0.84%). The most significant negative contribution was that of tomato (-24.49% and -0.08 percentage points of impact), whose prices had fallen in July (-11.28%). Besides, potato (-9.11%), green vegetables and (-6.53%) and meat (-0.75%) also recorded decreases in August, thus contributing to the change in the group observed in the month. In terms of hikes, the highlights were fruit (2.14%) and onion (7.05%), which accounted for impacts of 0.02 and 0.01 percentage points, respectively. 

Food away from home accelerated from July (0.15%) to August (0.53%), influenced by hikes in meals (0.52%) and snacks (0.47%), an item whose prices had fallen in the previous month (-0.34%).

In Transportation (-0.39%), the most significant negative impact (-0.08 p.p.) came from airfares, which fell 15.66%, after increases of 18.90% and 18.63% in June and July, respectively. As for fuels (0.01%), gasoline (-0.45%) and dielsel (-0.76%) decreased less than in the previous month (-2.80% and -1.76%, respectively). Ethanol, whose prices had fallen by 3.13% in July, rose 2.30% in August.

Also in Transportion, the result of the item intercity bus (0.38%) was influenced by the average price adjustment of 4.48% in long-distance intercity fares in Porto Alegre (3.69%), in effect since August 1st.

In Health and personal care (-0.03%), there was deceleration in the item health insurance (from 0.79% in July to 0.03% in August), resulting from the monthly fraction of the 7.35% authorized, on July 23, by the National Regulatory Agency for Private Health Insurance and Plans (ANS) with prior coverage to May, to be valid for new individual plans – those with contracts in effect from 1999 on. The result is the monthly fraction of the readjustment, not considering the change in the months of May, June and July. The item personal hygiene (-0.75%) had a less significant increase than in the previous month (-2.01%) and accounted for -0.02 percentage points.

The main individual impact on the IPCA of August came from Housing (1.19%). The item electricty, which had recorded an increase of 4.48% in the previous month, rose 3.85%, accounting for a contribution of 0.15 p.p. to the monthly index. After the introduction, in July, of the yellow tariff lfag, which charges 1.50 per each 100 Kw/h consumed, August was marked by the red-tariff flag, which charges an additional R$ 4.00 per each 100 Kw/h consumed. 

Except for Vitória (-8.64%) and Salvador (-1.37%), all the other areas surveyed recorded positive changes, which range from 1.44% registered in Campo Grande to 9.01% observed in Fortaleza. In Vitória, fares  were reduced by 6.48% from August 7 on and, in Salvador, the negative change resulted from the reduction of the PIS/COFINS rate. other highlight were the 1.94% increase in fares in Belém (4.64%), in effect since August 7, and the 7.03% increase in the fares of one of the concessionaires in São Paulo (5.06%), in effect since July 4th. 

Also concerning Housing, the result of piped gas (0.46%) is a consequence of the price adjustment of 0.99% in the fares of Rio de Janeiro (0.93%), in effect since August 1st. With reference to the item bottled gas (-0.93%), a highlight is that Petrobras announced a reduction by 8.17% in the price of the 13 kg bottle in refineries, nas refinarias, starting on August 5.

The result of the water and sewage rate (1.34%), resulted from the following readjustments: Goiânia (0.35%), 5.79%, since July 1st; Porto Alegre (0.23%), 7.69% in the fares of one of the concessionaires, since July 1st; Belo Horizonte (8.13%), 8.73%, since August 1st; Vitória (4.59%), 4.93%, since August 1st; Recife (0.02%), 6.70%, since August 12.

in addition to that, in Fortaleza (3.79%), there was a reduction, on July 2, de julho, from 15.86% to 4.31%, of the adjustment initially grantes in February. However, from July 9 on, that was cancelled and the adjustment of 15.86% was in effect once again. 

As for regional indexes, the biggest changes were those in the metropolitan areas of Fortaleza and São Paulo, both with 0.33%. These two results were influenced by the rise of electricity (9.01% in Fortaleza and 5.06% in São Paulo). The lowest index was registered in the metropolitan area of Vitória (-0.50%), also due to electricity (-8.64%), as a resuly of the 6.48% decrease in fares, since August 7 (see table below).

The IPCA has been calculated by the IBGE since 1980, refers to families with monetary income of between 01 and 40 minimum wages, whatever the source, and covers ten metropolitan areas, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasilia. For the calculation of the index of the month, the prices collected between July 30 and August 27, 2019 (reference) were compared with those in force between June 29 and July 29, 2019 (base).

INPC changes by 0.12%

In August, the National Consumer Price Index (INPC) changed by 0.12%, and was 0.02 percentage points above the July rate (0.10%). The cumulative change in the year was 2.68% and, in the last 12 months, the index accelerated to 3.28%, above the 3.16% registered in the previous 12 months. In August 2018, the rate was 0.00%.

In August, food products (-0.49%) had a more significant decrease than in the previous month (-0.05%). The group of non-food products recorded a change of 0.39%, versus 0.17% in July.

As for regional indexes, the biggest change took place in the metropolitan area of São Paulo (0.38%), due to the rise in electricity (5.06%). The lowest index was that from the metropolitan area of Vitória (-0.52%), also due to electricity, which fell by 8.62%, after the decrease of 6.48% in fares, in effect since August 7th. 

For the calculation of the index of the month, the prices collected between July 30 and August 27, 2019 (reference) were compared with those in force between June 29 and July 29, 2019 (base).

The INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the family, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju e de Brasília.