The National Extended Consumer Price Index 15 (IPCA-15) changed 0.23% in August, after registering 0.30% in July. In the year, the IPCA-15 accumulated an increase of 0.90% and, in 12 months, of 2.28%, above the 2.13% registered in the preceding 12 months. In August 2019, the rate was 0.08%.

Out of the nine groups of products and services surveyed, seven increased in August.  Transportation (0.75%) recorded the highest positive impact on the monthly index, with 0.15 percentage points (pp). However, there was deceleration in relation to July (1.11%). Conversely, the highest positive change came from household articles (0.88%) which increased for the fourth month in a row. The prices of products and services in housing (0.57%) and Food and beverages (0.34%) also increased, with impacts of 0.09 pp and 0.07 pp, respectively. On the side of decreases, the highlight was Education (-3.27%), with contribution of -0.21 pp. the other groups kept falling between 0.63% in Apparel and 0.86%] in Communication.

The result of the group Transportation (0.75%) was once again influenced by Fuels (2.31%). The greatest positive individual impact (0.12 pp) in the index of the month came from gasoline, whose price increased 2.63%. Diesel fuel (3.58%) and vehicular gas (0.47%) also increased, whereas ethanol fell 0.28%. Besides ethanol, the prices of airfares (-1.88%), of the transportation by app (-6.75%) and of vehicle insurance (-1.92%) also retreated. The latter with an impact of -0.02 pp in August IPCA-15.

Household articles (0.88%) accelerated over July (0.68%). The greatest contributions (0.02 pp and 0.01 pp, respectively) came from the items TV, sound and computer equipment (2.50%) and house appliances and equipment (0.94%). The prices of furniture (-0.14%) are still decreasing, although less sharply than in July (-0.91%).

In the group Housing (0.57%), the highlight was electricity (1.61%), due to tariff increased in: Belém  (2.73%): rise of 2.86%, as of August 7;  São Paulo  (3.34%): rise of 3.60% in one of the concessionaires, in force since the 4th of July;  Fortaleza  (1.18%): rise of 3.20%, as of July 1;  Salvador  (2.24%): rise of 4.41%, in force since July 1st;  Recife  (2.89%): rise of 4.55%, in force since July 1st;  Belo Horizonte  (1.46%): rise of 2.59% as of July 1; and  Porto Alegre  (1.49%): rise of 5.23% in one of the concessionaires, as of July 1st.

It is worth highlighting that the end of May was marked by the regulatory agency's (ANEEL) decision to keep the green tariff flag until the end of the year, with no additional charges in the electricity bill. The only areas where the prices of electricity retreated were Curitiba (-2.59%) and Brasília (-0.36%), both due to reduction in the PIS/COFINS quotes.

Also in Housing, there were highs in the prices of some construction material, as cement (5.26%), bricks (4.83%) and sand (1.53%). The decrease highlights were cleaning articles (-0.47%) and piped gas (-0.66%), whose change comes from the tariff reduction of 5.16% in Rio de Janeiro (-2.24%), in effect since August 1st.

The group  Food and beverages, after a drop of 0.34% in July, recorded a high of 0.13% in August. Food at home went up 0.61%, mainly influenced by the change seen in the prices of meat (3.06%), of long-life milk (4.36%) and of fruits (2.47%). Other important products in the family's baskets, as rice (2.22%) and French roll (0.99%) also rose. Meanwhile, the prices of tomatoes (-4.20%), of onions (-8.04%), of garlic (-8.15%) and potatoes (-17.16%) go on dropping. The latter had an impact of -0.03 pp in the monthly index.

In food away from home (-0.30%), the sharpest negative impact (-0.02 pp) came from meals (-0.52%), whose prices were practically stable in July (0.02%). Snacks, in turn, went from 0.20% in July to 0.06% in August.

Deflation (-3.27%) and the sharpest negative contribution (-0.21 pp) to the index came from the group Education. With the suspension of face-to-face classes due to Covid-19, several institutions granted discounts in the tuition fees. They were captured by the IPCA-15 of August, as informed in the technical note 02/2020. As a result of that, regular courses' prices fell 4.01%. The biggest decrease was seen in preschool (-7.30%), followed by master's and PhD programs (-5.83%), young-adults education (-4.74%) and of higher degree courses (-3.91%).

Rise was registered in all the regions surveyed in August. The highest index was in the Metropolitan Area of  Belo Horizonte (0.37%), due to the highs in the prices of meat (7.01%) and of gasoline (3,56%). Conversely, the lowest change was seen in Brasília (0.08%), due to the decrease in some food items, such as potatoes (-34.68%) and banana (-12.90%).  

In order to estimateIPCA-15, the prices collected from July 15 to August 13 of 2020 (reference) were compared with the ones in force from June 16 to July 14 of 2020 (base).  The indicator refers to families 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, 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.