In the group of Housing (1.54%), the item electricity (5.33%) decelerated in relation to June (7.93%), though it was the item that exerted the major impact on the July index (0.20 p.p.). Besides the maintenance of the red tariff flag level 2, which charged an additional R$0.05 per kWh consumed, some of the areas recorded adjustments (see table below).

The negative changes in Belém (-0.01%), Goiânia (-1.83%) and Vitória (-0.30%) were due to the reduction in the PIS/COFINS. These taxes increased in the other areas.

Still in the group of Housing, the change of 0.69% in the item water and sewage fees was due to the adjustments in the fare of the following areas:

The item bottled gas dropped (-0.18%), in spite of the adjustment of 4.38% in the 13-kg cylinder authorized by Petrobras on July 5.

The group of Transportation (0.49%) also decelerated between June and July, as a result of the drop in the prices of fuels (-1.80%). Having risen 5.00% and 4.22% in June, respectively, the prices of gasoline (-1.01%) and ethanol (-5.48%) decreased in July.

Urban bus rose 1.46%, reflecting the adjustments of 9.72% in the fare in Rio de Janeiro (7.34%), in force since June 21, and of 14.28% in Rio Branco (6.57%), as of July 14. On the other hand, the item intercity bus increased 0.38%, on average, with the adjustments of 8.94% since June 17 in Porto Alegre (3.56%), of 4.50% since June 18 in São Paulo (0.32%) and of 4.93% since July 7 in Goiânia (3.09%).

The item interstate bus rose 8.70%, due to the average adjustment of 10.14% in the fare, in force since July 2. The rises stood between 0.89% in São Luís and 19.22% in Fortaleza. Airfare rose 44.51%, after falling 2.05% in June.

The group of Food and beverages registered a deflation (-0.12%) in July, after recording the highest rise of the last 29 months in June (2.03%). The changes in the areas stayed between
-1.72% in São Luís and 1.07% in São Paulo. Besides the increase in the supply of food items, the deflation of this group in July reflected the realignment of prices after the rises due to the truckers´ strike in the end of May.

The group of food for consumption at home dropped 0.59% in July, after rising 3.09% in June. The major drops were: onions (from 1.42% in June to -33.50% in July), potatoes (from 17.16% to -28.14%), tomatoes (from 0.94% to -27.65%), fruits (from 1.61% to -5.55%) and meat (from 4.60% to -1.27%). On the side of the rises, the highlights were long-life milk (11.99%) and French bread (2.22%).

Food away from home accelerated between June (0.17%) and July (0.72%), highlighted by snack away from home (1.40%) and meals (0.39%).

In Wearing apparel (-0.60%) the drops in clothes (-0.91%): for men (-0.94%), for women (-0.87%) and for children (-0.91%), as well as in footwear (-0.44%) stood out.

In Health and personal care (0.07%), the deceleration was due to the item health insurance plans (0.30%), which reflected the appropriation of the monthly fraction of the adjustment of 10.00% authorized by the National Agency of Supplementary Health - ANS on June 27 and retroactive to May, to be applied to the new individual insurance plans – those signed after 1989. The result was the monthly fraction of the adjustment, discounted the change appropriated in May and June.

In regional terms, the highest index was reported in the metropolitan area of São Paulo (0.63%), due to the rise of 10.08% in electricity, whose fare was readjusted by 15.84% in one of the local concessionaires since July 4. The rises in long-life milk (11.46%) and airfare (45.77%) also stood out. The lowest index was reported in Campo Grande
(-0.37%), where the drops in onions (-41.38%), potatoes (-38.01%), tomatoes (-31.34%), and gasoline (-2.98%) stood out.

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. It encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. In order to measure the index of the month, the prices collected from June 28 to July 27, 2018 (reference) were compared with the ones in effect from May 30 to June 27, 2018 (base).

INPC changes 0.25% in July

The National Consumer Price Index - INPC changed 0.25% in July and stood 1.18 p.p. below the rate of 1.43% of June. The cumulative index in the year stayed at 2.83%, above the rate of 1.30% recorded in the same period last year. The cumulative index over the last 12 months stood at 3.61%, above the rate of 3.53% of the preceding 12 months. The rate hit 0.17% in July 2017.

Having risen 2.24% in the previous month, Food products fell 0.20% in July. The group of non-food products changed 0.44% against 1.08% in June.

In regional terms, the highest rate was reported in the metropolitan area of Rio de Janeiro (0.75%), due to the adjustment of 9.72% in the urban bus fare (7.34%), in force since June 21. Long-life milk (21.96%) and electricity (3.06%) also stood out. The lowest index (-0.49%) was recorded in São Luís, where the highlights were onions (-31.16%) and tomatoes (-29.41%).

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.  In order to measure the index of the month, the prices collected from June 28 to July 27, 2018 (reference) were compared with the ones in effect from May 30 to June 27, 2018 (base).