The Extended National Consumer Price Index 15 (IPCA-15) changed by 0.06% in June, decelerating in relation to May (0.35%). The rate of 0.06% was the lowest for a month in June since 2006 (-0.15%). The IPCA-E, which is the quarterly cumulative IPCA-15, was 1.13%, below the 1.46% rate for the same period of 2018. The IPCA-15 accumulated a rise of 2.33% in the year and 3.84% in 12 months, a result below the 4.93% recorded in the 12 previous months. In June 2018, the rate was 1.11%.

The group Food and beverages, which had remained stable in May (0.00%), had deflation (-0.64%) in June, with the most negative impact on the index of the month: -0.16 percentage point ( pp). Out of those groups on the rise, the highest positive change was with Health and personal care (0.58%) and the highest impact (0.08 p.p.), with the Housing group (0.52%). The other groups ranged between the 0.00% of Communication and the 0.25% of Transportation, whose impact on the index of the month was 0.05 pp.

The result of the group Food and beverages (-0.64%) was influenced by the drop in the group of food at home (-0.82%), with a highlight to carioca beans (-14.99%), tomatoes (-13.43%), red beans (-8.84%), potatoes (-11.30%), black beans (-8.84%), and fruit (-5.25%). On the other hand, the prices of long-life milk (2.80%) and meat (0.64%) increased from May to June, with impacts of 0.03 pp and 0.02 pp, respectively. Food away, after a rise of 0.48% in May, also registered a fall in prices (-0.33%), mainly due to the item meal (-0.87%).

In Housing (0.52%), the greatest impact (0.02 p.p.) came from electricity (0.64%), which had risen 0.72% in the previous month. After the coming into effect of the yellow tariff in May, which increased the electricity bills by R$0.01 per kilowatt/hour consumed, the green flag came back into effect in June, with no additional charge.

Regional changes range from a fall of 0.58% in the metropolitan area of Recife to a high of 3.51% in the metropolitan area of Belo Horizonte, where there was an average increase of 7.89% in tariffs, effective on May 28 . In Recife, despite the 5.56% tariff increase on April 29th, there was a reduction of PIS/COFINS, which led to a negative change in the month. Other areas with increase were Fortaleza (2.04%), with a rise of 7.39%, and Salvador (1.38%), where there was an average increase of 6.21%, both as of April 22.

Still in Housing, the change of 3.15% in the piped gas is due, especially, to the readjustment of up to 27.00% in tariffs in São Paulo (9.57%), in effect since May 31. The negative variation of Rio de Janeiro (-0.86%) was a consequence of the average 1.40% reduction in tariffs, since May 1.

The water and sewage rate (1.16%) item reflects increases in the following areas: São Paulo (4.05%) - increase of 4.72%, as of May 11; Brasília (1.48%) - increase of 3.45%, as of June 1, in addition to the increases before April; Salvador (0.16%) - increase of 4.70%, as of June 12.

It should be noted the result of the item gas bottle (0.34%), after the increase of 3.43% granted by Petrobras, in the refineries, as of May 5.

The Transportation group decelerated from 0.65% in May to 0.25% in June. This slowdown was due to fuels, which fell 0.67%, compared to a rise of 3.30% in the previous month. Gasoline, which had risen 3.29% in the May IPCA-15, showed a less intense increase in June of 0.10%. Ethanol, in turn, went from a high of 4.00% to a fall of 4.57%. Concerning the highs, the highlight is airfare (18.98%), which exerted the highest individual impact on the index of the month (0.06 p.p.).

A variação de 0,20% nos ônibus urbanos, também do grupo dos Transportes, é decorrente dos reajustes de 9,09% na região metropolitana de Belém (2,73%), a partir de 5 de junho, e de 7,50% em Goiânia (1,18%), vigente desde 19 de abril. Quanto aos ônibus intermunicipais (0,69%), houve reajustes em: Porto Alegre (0,11%) – reajuste de 6,66%, a partir de 1º de junho; Fortaleza (7,44%) – reajuste de 10,00% a partir de 25 de maio; Salvador (2,07%) – reajustes entre 3,30% e 7,50%, a partir de 6 de maio.

The group Health and personal care (0.58%) also decelerated in relation to the rate seen in the previous month (1.01%), mainly due to medicines, which increased from 2.03% in May to 0.15% in June. Personal hygiene items, on the other hand, showed acceleration in the price level, increasing from 0.62% to 1.10% and contributing with an impact of 0.03 pp to the index of the month.

Regarding the regional indices, from May to June, 5 of the 11 areas surveyed presented deflation. The lowest index was in the metropolitan area of Porto Alegre (-0.21%) due to the drop in fruit  (-12.71%) and gasoline prices (-2.64%). The largest result was in Brasília (0.30%), influenced by the high price of airfare (19.10%).

For the calculation of the IPCA-15, prices were collected from May 16 to June 12, 2019 (reference) and compared with those in force from April 13 to May 15, 2019 (base). The indicator refers to families with income from 1 to 40 minimum wages and covers the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, as well as Brasília and Goiânia. The methodology used is the same as that of the IPCA, the difference is in the collection period and in the geographic coverage.