The Extended National Consumer Price Index (IPCA) in June was 0.26%, after the 0.38% drop in May. Thus, the indicator accumulates an increase of 0.10% in the year while the cumulative index in 12 months is 2.13%, above the 1.88% registered in the prior 12-month period. In June 2019, the rate had been 0.01%.

Among the nine groups of products and services surveyed, seven recorded decrease:  The highest impact (0.08 percentage points) came from  Food and beverages (0.38%), representing an acceleration against May result (0.24%). The second biggest contribution (0.06 pp) come from Transportation, whose prices rose 0.31% after decrease of 1.90% in May.

Other highlights were the groups household articles (1.30%), which presented the highest positive change in the month, and health and personal care (0.35%). Among the drops, the highlights are the changes in  Wearing apparel (-0.46%), which contributed with -0.02 pp on June index. The other groups stood between the drop of 0.05% in Personal expenses and the rise of 0.75% in Communication.

In Food and beverages (0.38%), the foods consumed at home went from 0.33% in May to 0.45% in June, influenced mainly by the high in the prices of meat (1.19%) and long-life milk (2.33%). Other important items in the families' basket, as rice (2.74%), carioca beans (4.96) and cheese (2.48%) also recorded positive change, contributing with 0.01 pp of impact each.

Among the drops, the highlights were tomatoes (-15.04%) and carrots (-8.88%), whose prices had already dropped in May (-7.34% and -14.95%, respectively).

Foods away from home also accelerated from May (0.04%) to June (0.22%), especially because of the item snack (1.01%), which contributed with 0.02 pp in June's IPCA. Meals (0.07%), in turn, presented less sharp decrease than in May's comparison (-0.34%).

Transportation (0.31%) recorded a positive change after four consecutive months of decrease, especially due to the high in the prices of gasoline (3.24%), the highest individual impact on the index of the month (0.14 pp). Ethanol (5.74%), vehicular natural gas (1.01%) and diesel oil  (0.04%) also registered increase, taking the price of  fuels  up to 3.37% (compared to the -4.56% change registered in May).

Among the drops, the highlight was airfare (-26.01%), which recorded a similar change of May's (-27.14%) and contributed with the highest negative individual impact on the June IPCA (-0.11 pp). Besides, the item transportation app after a high of 5.01% in May, recorded -13.95% of change and contributed with -0.03 pp to the month's index.

Also in Transportation, the change of the subitem subway train (1.43%) reflects the 8.70% increase in the fares in Rio de Janeiro (5.22%), in force since June 11. The drop in the subitem taxi cab (-0.35%), in turn, comes from the cancellation, as of May 22, of the increase occurred in Rio de Janeiro (-1.64%) in January.

The biggest positive change in the IPCA in June came from Household articles (1.30%), due to the rise in household appliances and equipment (2.92%) and in TV, sound and computer articles (3.80%), which contributed 0.02 pp and 0.03 pp, respectively. Furniture items (-1.33%) continue to fall, although the change was less intense than that observed in May (-3.17%).

In Health and personal care (0.35%), the highlights were pharmaceutical products, which rose 1.44% and contributed 0.05 p.p. to the month's index, after falling 1.16% in the previous month.

The biggest negative change (-0.46%) and the biggest negative impact (-0.02 p.p.) in the IPCA in June came from Wearing apparel, which had already fallen in the previous month (-0.58%). Women's clothing (-0.95%), kidswear (-0.41%) and footwear and accessories (-0.61%) recorded a decrease in prices, while jewelry rose 0.54%, accumulating an increase of 6.50% in the year.

In Housing (0.04%), the positive variation of cylinder gas (1.41%) stands out, on the one hand, and, on the other hand, the drop in residential electricity (-0.34%). It is worth remembering that, on May 26, the National Electric Energy Agency (ANEEL) announced that it will maintain the green tariff flag, in which there is no additional charge on the electricity bill, until the end of this year. In Curitiba (-0.42%), there was a 0.94% reduction in tariffs, in effect since June 24th.

Still in Housing, the result of the sub-item piped gas (-0.18%) is a consequence of the average 2.60% reduction in tariffs in Rio de Janeiro (-0.09%), in effect since May 1, and the reduction 0.27% in São Paulo tariffs (-0.26%), valid since May 31. Finally, it should be noted that the item water and sewage fee (0.18%) presented a positive variation in June due to the change in the tariff structure in Brasília (4.85%), implemented as of June 1.

Regarding the regional indices, four of the sixteen areas surveyed experienced deflation in June. The lowest index was found in the municipality of São Luís (-0.35%), especially due to the falls in the prices of perfumes (-3.39%) and tomatoes (-13.89%). The greatest result was seen in the metropolitan are of Curitiba (0.80%), due to the high prices of gasoline (7.01%) and ethanol (10.35%)

In order to estimate the index of the month, the prices collected from May 29 to June 30 of 2020 (reference) were compared with those in force from April 30 to May 28 of 2020 (base). It is worth mentioning that, due to the public health emergency caused by COVID-19, the IBGE has suspended, on March 18, the face-to-face price collection at the places of purchase. From that date, prices began to be collected by other means, such as surveys carried out on internet web sites, by telephone or by e-mail.

INPC stands at 0.30% in June

The National Consumer Price Index (INPC) of June changed by 0.30% against -0.25% in May. In the year, the cumulative change was 0.36% and, in the last twelve months, the index increased by 2.35%, above the 2.05% registered in the previous 12 months. In June 2019, the rate was 0.01%.

Food products increased by 0.37% in June, while in the previous month they registered 0.40%. The group of non-food products changed by 0.28%, after registering a decrease of 0.44% in May.

With regard to regional indexes, the metropolitan area of Curitiba (0.86%) presented the highest result, mainly due to the increases in gasoline (7.01%) and ethanol (10.35%). The lowest index, in turn, was the municipality of São Luís (-0.39%), influenced by the drops in the prices of perfumes (-3.39%) and tomatoes (-13.89%).

In order to estimate the index of the month, the prices collected from May 29 to June 30 of 2020 (reference) were compared with those in force from April 30 to May 28 of 2020 (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.