The Extended Consumer Price Index (IPCA) in August was -0.36%, the second consecutive month of deflation. In July, the change had been -0.68%. In the year, the IPCA accumulates a high of 4.39% and, in the last 12 months, of 8.73%, below the 10.07% observed in the 12 immediately previous months. In August 2021, the change had been 0.87%.

Just as in July, August result was mainly influenced by the fall in the Transportation group (-3.37%), which contributed -0.72 percentage points (pp) to the index for the month. In addition, the Communication group (-1.10%) also declined, with an impact of -0.06 pp. Among the highs, the highlight was Health and personal care (1.31%), which contributed with 0.17 pp in August. Food and beverages (0.24%) decelerated in relation to July (1.30%), with an impact of 0.05 pp. The other groups were between 0.10% for Housing and 1.69% for Wearing apparel, the biggest positive change in the IPCA in August.

The result of the group of Transportation (-3.37%) was influenced by the rise in the prices of fuels (10.82%). In August, the prices of the four fuels surveyed fell: vehicular gas (-2.12%), diesel fuel (-3.76%) ethanol (-8.67%) and gasoline (-11.64%). The latter with the sharpest negative impact (-0.67 pp) among the 277 subitems of the IPCA. It is worth mentioning that the price of gasoline in the refineries was reduced to R$ 0.18/liter on August 16. Airfare prices (-12.07%) also retreated, after four months of highs.

Also in Transportation, the high of the subitem taxi (0.38%) reflects the increases in Vitória (35.94%) and Campo Grande (10.11%). In Vitória, there was a 58.10% increase in the traveled km and of 39.64% in the initial tariff, effective on August 8. In Campo Grande, there was increase of 12% in the traveled km, effective since June 23, which had not been absorbed previously.

The group Communication (-1.10%) changed negatively especially due to the reduction in the landline telephone services (-6.71%) and in mobile telephone services (-2.67%)

In Health and personal care (1.31%), the major contributions of the month came from the items of personal hygiene (2.71%) and health insurance plans (1.13%). In the case of health insurance plans, the monthly share of the 15.50% increase authorized by the National Agency of Supplementary Health for new plans, which weigh 89% in the subitem.

In the group food and beverages (0.24%), the result of food at home (0.01%) stood close to stability. There were highs in important components of the family baskets, such as chicken pieces (2.87%), cheese (2.58%) and fruit (1.35%). On the other hand, there were significant drops in the prices of tomatoes (-11.25%), potatoes (-10.07%) and of soybean oil (-5.56%). In addition, the price of long-life milk, which had risen 25.46% in July, dropped 1.78% in August, contributing -0.02 pp in the month index.

The change in food away from home (0.89%) was close to the previous month (0.82%). While meals went from 0.53% to 0.84%, snacks slowed down from 1.32% to 0.86%.

In Housing (0.10%), there was decrease in household electricity (-1.27%), although less intense than that of the previous month (-5.78%). The change in the areas ranged from -14.41% in Recife, where the values charge  for the services of transmission and distribution of the ICMS were taken out on July 28, up to 11.16% in Vitória, where there was increase of 10.37% in the tariffs starting on August 7, besides the rise in PIS/COFINS.

There were also the increases in the tariff by Kwh in Belém (7.71%), whose 14.74% rise was implemented in August, and  São Luís (-6.22%). In the capital of Maranhão, the result was negative, due to the 6.62% increase which was only implemented in the end of the reference period, on August 28, and there was ICMS reduction in July 13, as well as the elimination of the charge over transmission and distribution services.

In Housing, there was also the positive change of the subitem piped gas (0.26%), due to the 0.20 increase in Rio de Janeiro  (0.18%), effective on August 1st, and increase of 2.26% in Curitiba (1.49%), effective on August 9. In water and sewage fees (0.05%), the high is due to the increases in two areas of Porto Alegre (0.26%), the increase of 18.16% in one of the concessionaires was implemented on July 1st; whereas in Campo Grande (0.64%) a rise of 0.60% in August complemented the 5% increase implemented in January.

The greatest positive change in the IPCA of August came from the group wearing apparel (1.69%). After the deceleration from June (1.67%) to July (0.58%), prices resumed increase more intensely in August. The highlights were women’s wearing apparel (1.92%), men’s wearing apparel (1.84%) and footwear and accessories (1.77%).

At last, the group Education had a rise of 0.61%. In regular courses (0.51%), just Postgraduate courses (-1.46%) decreased prices. The greatest changes were in youth and adult education (3.68%), daycare (1.41%) and technical courses (1.02%).

By areas, three of the 16 places increased in August.  The greatest positive change was in Vitória (0.46%), influenced by the high of 11.16% in electricity. The lowest result, in turn, occurred in Recife (-1.40%), leveraged by the decrease of 16.23% in the prices of gasoline.

INPC decreases 0.31% in August

The National Consumer Price Index (INPC) had decrease 0.31% in August. In the previous month, there was also deflation in this indicator (-0.60%). The cumulative INPC in the year is 4.65% and, in the last 12 months, it is 8.83%, below the rate of 10.12% registered in the prior 12-month period. In August 2021, the rate was 0.88%.

Food products decelerated from 1.31% in July to 0.26% in August, whereas non-food products recorded the smallest drop (from -0.50% in August against July result of -1.21% in July). 

As for the regional indexes, four of the sixteen areas had rise in August. The biggest change was in Vitória (0.66%), leveraged by the rise of 11.33% in electricity. The lowest, however, was seen in Belo Horizonte (-1.20%), due to the 13.19% decrease in the price of gasoline.

In order to estimate the index of the month, the prices collected from July 2 to August 29, 2022 (reference) were compared with the prices in force from June 30 to July 28, 2022 (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.