The Extended National Consumer Price Index 15 (IPCA-15) was 0.72% in July, standing 0.11 percentage points below the June´s rate (0.83%). That was the highest change for July since 2004, when the index had been 0.93%. The cumulative index in the year stayed at 4.88% and, in the last 12 months, at 8.59%, above the rate of 8.13% registered in the 12 immediately previous months. The monthly change had been 0.30% in July 2020.

Of the nine groups of products and services surveyed, seven rose their prices in July. The biggest impact (0.33 p.p.) and the highest change (2.14%) came from Housing. The second biggest contribution came from Transportation (1.07% and 0.22 p.p.), though it decelerated in relation to the previous month (1.35%). It was followed by Food and beverages (0.49%), whose result stood above the June´s IPCA-15 (0.41%) and contributed with 0.10 p.p. to the month´s index. The group of Health and personal care (-0.24%), in turn, dropped over the previous month and contributed with -0.03 p.p. to the overall index. The other groups stood between -0.04% of Communication and 0.81% of Household articles.

The result of the group of Housing (2.14%) was influenced by the rise in electricity (4.79%), which accelerated over June (3.85%) and exerted the biggest impact (0.21 p.p.) on the July´s IPCA-15. The red tariff flag level 2 was in force in the months of June and July, but it was adjusted by 52% on July 1st and began to charge R$9.492 per each 100 kWh consumed. Before that, the charge was R$6.243. In addition, the result was a consequence of the adjustments of 11.38% in São Paulo (6.29%) on July 4, and of 8.97% in Curitiba (9.41%) on June 24.

Still in Housing, the prices of bottled gas (3.89%) and piped gas (2.79%) also increased. In the sub-item piped gas, the rise was due to the adjustment of 9.63% in the residential segment in São Paulo (4.90%) on May 31. The change in water and sewage fees (0.21%) also stood out, due to the adjustments of 6.90% in Porto Alegre (1.54%), in force since July 1st, and of 5.78% in Curitiba (0.51%), occurred on May 17. Brasília (-0.35%) recorded an average reduction of 2.74% since June 1st.

In the group of Transportation (1.07%), the major contribution came from airfare (35.64% and 0.11 p.p.), which had fallen 5.63% in June. Still in public transportation (4.14%), urban bus rose 0.16% with the adjustment of 5.49% in the fare in Porto Alegre (2.20%) on July 2. The rise of 0.15% in intercity bus was also influenced by the adjustment of 4.83% in Porto Alegre (1.80%) on July 1st.

Having risen 0.32% in June, own vehicles rose 0.73% in July. Motorcycles (1.93%), used cars (1.26%) and new cars (0.30%) remained rising and jointly contributed with 0.04 p.p. to the month´s index. In addition, products and services related to these sub-items, like tyre (2.76%), voluntary insurance (1.95%) and car repair (0.40%), had a similar behavior. He rise of 2.44% in toll was influenced by adjustments in several places since July 1st, like São Paulo (3.11%) and Curitiba (0.33%).

Still in Transportation, the prices of fuel (0.38%) decelerated in relation to June (3.69%). Gasoline rose 0.50% in Ajuky and accrued a rise of 40.32% in 12 months.

In Food and beverages (0.49%), food at home changed from 0.15% in June to 0.47% in July. The rises in long-life milk (4.09%), chicken pieces (3.09%), meat (1.74%) and French bread (1.81%) contributed to that acceleration. On the other hand, onions (-15.94%), potatoes (-14.77%), fruits (-1.33%) and rice (-1.14%) remained dropping.

In food away from home (0.52%), the movement was reverse. Both snacks (0.55%) and meals (0.53%) decelerated in relation to June, when they registered rises of 1.67% and 0.86%, respectively.

The negative change in the group of Health and personal care (-0.24%) reflected the drop in the item health plan (-1.36% and -0.05 p.p.), due to the adjustment of -8.19% authorized by the National Regulatory Agency for Private Health Insurance and Plans (ANS) on July 8, valid from May 2021 to April 2022. Therefore, the July´s IPCA-15 encompassed the monthly fractions of May, June and July.

All the 16 areas surveyed reported a positive change. The lowest result occurred in Brasília (0.38%), influenced by the drop in the prices of fruits (-7.43%) and women’s wearing apparel (-2.92%). In contrast, the highest change was recorded in Curitiba (1.19%), due to the rises in electricity (9.41%) and airfare (39.92%).

To calculate the IPCA-15, prices were collected from June 15 to July 13, 2021 (reference) and compared to those in force from May 14 to June 14, 2021 (base). The indicator refers to households with monthly income of 1 to 40 minimum wages and it encompasses the metropolitan areas of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador, Curitiba, as well as Brasília and the municipality of Goiânia. The methodology is the same as the one used for the IPCA; the difference lies in the period of price collection and in the geographic coverage.