IPCA-15 stays at 0.30% in July

July 24, 2020 09h00 AM | Last Updated: July 27, 2020 12h32 PM

The Extended National Consumer Price Index 15 - IPCA-15 increased 0.30% in July, after registering 0.02% in June. The cumulative change in the year was 0.67% and the cumulative index in 12 months was 2.13%, above the rate of 1.92% recorded in the immediately previous 12  months. In July 2019, the rate had been 0.09%.

Period Rate
July 2020 0.30%
June 2020 0.02%
July 2019 0.09%
Cumulative in the year 0.67%
Cumulative in the last 12 months 2.13%

Of the nine groups of products and services surveyed, five rose in July. The biggest impact (0.22 percentage points) and the bigger positive change (1.11%) came from Transportation, which increased after four months of drops. The second biggest impact (0.08 p.p.) came from Housing, which registered a change of 0.50%. Household articles (0.68%), Health and personal care (0.40%) and Communication (0.46%) also had their prices increased.

Among the drops, the highlights were  Wearing apparel (-0.91%) and Food and beverages (-0.13%). The other groups with deflation were Personal expenses (-0.23%) and Education (-0.07%).

IPCA-15 - Groups - Change and Impact  
Group Change (%) Impact (p.p.)
June July June July
Overall Index 0.02 0.30 0.02 0.30
Food and beverages 0.47 -0.13 0.09 -0.03
Housing -0.07 0.50 -0.01 0.08
Household articles 1.36 0.68 0.05 0.02
Wearing apparel -0.15 -0.91 -0.01 -0.04
Transportation -0.71 1.11 -0.14 0.22
Health and personal care -0.01 0.40 0.00 0.05
Personal expenses -0.03 -0.23 0.00 -0.03
Education 0.03 -0.07 0.00 0.00
Communication 0.66 0.46 0.04 0.03
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços, Sistema Nacional de Índices de Preços ao Consumidor.  

In July, Transportation (1.11%) was impacted by the rise in the prices of fuels (4.40%). After four consecutive drops, gasoline rose 4.47%. Ethanol (4.92%), diesel fuel (2.50%) and vehicular gas (0.01%) also registered positive changes. The sub-item subway (2.00%) also rose, due to the adjustment of 8.70% in the fare in Rio de Janeiro (7.30%), in force since June 11.

On the other hand, transportation through apps (-11.98%) and airfare (-4.16%) dropped, as well as taxi (-0.10%), which was adjusted in February in Rio de Janeiro (-0.47%) and canceled on May 22.

The result of Housing (0.50%) was mainly influenced by the adjustments in electricity (1.03%) in seven metropolitan areas. It fell 1.39% in Curitiba and rose in six places, which varied from 0.28% in Porto Alegre to 5.15% in Fortaleza. The variation in the water and sewage fees (0.13%) reflected the rise of 2.77% in Brasília, as a result of the change in the billing structure implemented on June 1st. 

The only cost to drop in Housing was piped gas (-0.08%), due to the reduction of 0.27% in the fare in São Paulo (-0.14%).

The group of Wearing apparel recorded the lowest figure (-0.91%) and the most intense negative impact (-0.04 p.p.) on the July´s index. Although jewels and bijous (1.67%) rose for the second month in a row, the prices of women’s wearing apparel (-1.32%), men´s wearing apparel (-1.18%) and children´s wearing apparel (-0.59%) dropped, as well as footwear and accessories (-0.88%).

After rising for four consecutive months, the group of Food and beverages (-0.13%) dropped in July. Food at home fell 0.20%, influenced by the reduction in the prices of some tubers, roots and legumes (-15,76%), like  tomatoes (-22.75%),  potatoes (-20.70%),  carrots (-18.60%) and onions (-7.09%). In addition, whole chicken (-1.22%) and hen eggs (-1.82%) posted more intense drops compared with June (-0.67% and -0.68%, respectively).

On the rising side, the highlights were long-life milk (3.61%), rice (2.58%) and meat (2.20%).

Food away from home (0.03%) decelerated in relation to the June´s result (0.26%). While snacks changed from 0.82% to 0.20%, meals remained virtually stable, changing from 0.00% in June to a rise of 0.02% in the July´s IPCA-15.

Concerning the regional indexes, only the metropolitan area of Rio de Janeiro (-0.07%) registered deflation in July. This result was especially due to the drop in the prices of tomatoes (-33.48%), potatoes (-28.91%) and transportation through apps (-15.94%). The highest index was recorded in the metropolitan area of Curitiba (0.76%), influenced by the rise in the prices of fuels (10.91%), especially ethanol (15.16%) and gasoline (10.39%).

IPCA-15 - Areas
Area Regional Weight (%) Monthly Change (%)  Cumulative Change (%) 
June July Year 12 months
Curitiba 8.09 -0.08 0.76 -0.03 1.71
Salvador 7.19 0.05 0.75 1.42 2.42
Recife 4.71 0.06 0.62 1.76 2.36
Brasília 4.84 0.10 0.55 0.04 1.33
Goiânia 4.96 0.13 0.39 -0.50 1.67
Fortaleza 3.88 -0.17 0.31 1.72 2.64
Belo Horizonte 10.04 -0.09 0.26 0.63 1.94
Belém 4.46 -0.20 0.22 0.52 2.63
São Paulo 33.45 0.00 0.19 0.78 2.54
Porto Alegre 8.61 0.07 0.07 0.18 1.65
Rio de Janeiro 9.77 0.27 -0.07 0.84 1.89
Brazil 100.00 0.02 0.30 0.67 2.13
Source: IBGE, Diretoria de Pesquisas, Coordenação de Índices de Preços, Sistema Nacional de Índices de Preços ao Consumidor.  

In order to estimate the IPCA-15, the prices collected from June 16 to July 14, 2020 (reference) were compared with the ones in force from May 15 to June 15, 2020 (base). The indicator refers to households with monthly income of 1 to 40 minimum wages and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, as well as Brasília and Goiânia. The methodology is the same as the one used for the IPCA; the difference lies in the period of price collection and in the geographic coverage.