The Extended National Consumer Price Index (IPCA) of August was -0.11%, 0.37 percentage points (p.p.) below the rate of July (0.26%). In the year, the cumulative IPCA was 3.15% and, in the last 12 months, the index stood at 5.13%, below the previous 12-month rate (5.23%). In August 2024, the change was -0.02%.

In August, five of the nine groups of products and services surveyed recorded a negative change, and three items stand out with the biggest contributions to the index: Housing (-0.90%), Food and beverages (-0.46%) and Transportation (-0.27%). From the perspective of increases, changes ranged between 0.75% in Education and 0.40% in Personal expenses.

The drop in Housing (-0.90%), the lowest result for a month of August since the start of Plano Real, came from the -0.17 p.p. contribution of residential electricity, which fell 4.21% in the month, as a result  of the incorportation of the itaipu bônus, charged in invoices issued in August. Red tariff flag level 2 was in effect then, adding R$ 7.87 to one’s electricity bill per 100 Kwh consumed. Price adjustments were also incorporated: 18.62% in São Luís (-5.90%) in effect since August 28; 15.32% in Vitória (7.02%) since August 07; 4.25% in Belém (-2.34%) since August 07 and 13.97% in one of the concessionnaires of São Paulo (-3.64%) in effect sice July 04.

Also in Housing, the subitem bottled gas (0.37%) considers the proced adjustment of 6.41% in the fares of Curitiba (6.20%), in effect since August 1 and the average dropo f 1.22% in the fares of Rio de Janeiro (-1.17%) in effect since august 1st. The water and sewage fare (0.24%) covered the price rises of 4.81% in Vitória (4.64%), starting on August 1 and of 4.97% in Salvador (2.76%), on July 18.

Food and beverages (-0.46%), with the highest share of the index, had decreases in average prices for the third month in a row (-0.18% in June and -0.27 in July). The drop in August was influenced by food at home, which fell 0.83%, after the drop of 0.69% in July, with a highlight to drops in tomato (-13.39%), potato (-8.59%), onions (-8.69%), rice (-2.61%) and ground coffee (-2.17%).

Food away from home decelerated from July (0.87%) to August (0.50%). The subitem snacks went from 1.90% in July to 0.83% in August, and meals went from 0.44% in July to 0.35% in August.

The change in Transportation (-0.27%) reflects the drop in airfares (-2.44%) and in fuels (-0.89%). In August, price drops were recorded in vehicle gas (-1.27%), gasoline (-0.94%) and ethanol (-0.82%) whereas diesel rose 0.16%. 

Also relevant is the impact of free fares on Sundays and holidays on urban buses (-0.14%) in Belém (-4.01%) and the incorporation of the following adjustments in taxi fares (2.96%): 24.53% in Belém (14.73%), starting on August 12 and 12.37% in São Paulo (7.85%), starting on August 11. 

Education changed by 0.75% in August with the incorporation of price adjustments in regular courses (0.80%), mainly due to the subitems higher education (1.26%) and primary education (0.65%). The rise in courses in general (0.91%) was influenced by language courses (1.87%).

As for Wearing apparel (0.72%), men’s wear (0.93%) and footwear and accessories stand out (0.69%).

In Health and personal care (0.54%) increases in personal hygiene (0.80%) and in health insurance (0.50%) are the highlights.

Regarding Personal expenses (0.40%), it encompassed, besides rises in gambling (3.60%), in effect since July 9, a drop of 4.02% in the subitem cinema, theater and concerts due to the Cinema Week.

As for regional index, Vitória recorded the biggest change (0.23%) due to residential electricity (7.02%) and water and sewage rate (4.64%). The smallest change (-0.40%) was registered in Goiânia and Porto Alegre, influenced by drops in residential electricity (-7.and7% e -6.68%) and in gasoline (-2.20% and -2.69%).

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 and encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília..

In order to estimate the index of the month, the prices collected from July 31 to August 29, 2025 (reference) were compared with those in force from July 1 to July 30, 2025 (base).

INPC drops 0.21% in August

The National Consumer Price Index (INPC) recorded a decrease of 0.21% in August. The cumulative index in the year is 3.08% and, in the last 12 months, 5.05%, below 5.13% observed in the previous 12 months. In August 2024, the rate was de -0,14%.

Food products changed from -0.38% in July to -0.54% in August. The change in non-food products went from 0.41% in July to -0.10% in August.

As for regional indexes, the biggest change (0.31%) was found in Vitória due to residential electricity (7.11%) and of water and sewage fares (4.64%). The lowest change was found in Rio de Janeiro (-0.53%) due to decreases in residential electricity (-6.08%) and in ground coffee (-4.93%).

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 and encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.

In order to estimate the index of the month, the prices collected from July 31 to August 29, 2025 (reference) were compared with those in force from July 1 to July 30, 2025 (base).