The Extended National Consumer Price Index (IPCA) of July increased 0.96%, 0.43 percentage points (pp) above June’s rate (0.53%). It is the biggest July change since 2002, when the index reached 1.19%. In the year, the IPCA accumulates a high of 4.76% and, in the last 12 months, of 8.99%, above the 8.35% recorded in the previous 12 months. In July 2020, the monthly change had been of 0.36%.

Of the nine groups of products and services surveyed, eight increased in July. The biggest change (3.10%) and the biggest impact (0.48 pp) came from Housing. The second largest contribution (0.32 pp) came from the Transportation group (1.52%), which accelerated compared to the previous month (0.41%). Next, came Food and beverages (0.60% and 0.13 pp), whose result was also above the one registered in June (0.43%). In turn, the Health and personal care group (-0.65%) showed a decrease and contributed with -0.09 pp to the overall index. The other groups were between the 0.12% of Communication and the 0.78% of Household articles.

The result in Housing (3.10%) was influenced by the rise in electricity (7.88%), which accelerated compared to the previous month (1.95%) and registered the greatest individual impact on the IPCA in July (0, 35 pp). The level 2 red tariff flag was in effect in June and July. However, as of July 1st, there was a 52% increase in the additional value of this tariff flag, which came to charge R$ 9,492 for each 100 kWh consumed. Before, the increase was R$ 6,243. In addition, the result is a consequence of the tariff adjustments of 11.38% in São Paulo (12.45%), as of July 4, and 8.97% in Curitiba (11.34%), as of 24 June, and of 9.08% in one of the concessionaires in Porto Alegre (8.02%), as of June 19th. The latter had not been incorporated into the June IPCA and, therefore, was fully captured in the July index.

Still in Housing, the prices of bottled gas (4.17%) and piped gas (0.48%) also rose. In the piped gas sub-item, there was a residual contribution referring to the 9.63% adjustment in the residential segment in São Paulo (0.83%) as of May 31st. The sub-items residential rent (0.93%) and condominium fees (0.66%) accelerated compared to the previous month, whose increases had been 0.48% and 0.49%, respectively. Also noteworthy is the change in the water and sewage rate (0.33%), due to the increaes of 6.90% in Porto Alegre (3.19%), effective since July 1st, and 1.62% in Campo Grande (0.27%), on July 24th. In Brasília (-0.35%), there was an average reduction of 2.74% as of June 1st.

In the Transportation group (1.52%), the main contribution came from airfares (35.22% and 0.10 pp), which had fallen 5.57% in June. In public transportation (4.52%), the highlights were the increases in transportation apps (9.31%) and urban buses, which rose 0.38% as a result of the 5.49% adjustment in fares in Porto Alegre (5.06%), as of July 2nd. The 0.34% increase in the intercity bus sub-item was influenced by the 4.83% adjustment in fares, also in Porto Alegre (5.39%), as of July 1st, in addition to the residual contribution related to the 6.80% on fares in Salvador (1.48%) as of June 1st.

Fuel prices (1.24%) accelerated compared to June (0.87%). In particular, gasoline rose 1.55%, while it had risen 0.69% in the previous month, contributing with 0.09 pp to the month's index.

Also in Transportation, own vehicles, which had risen 0.36% in June, registered a 0.96% increase in July. Used cars (2.23%), motorcycles (1.41%) and new cars (0.54%) remained on the rise and contributed together with 0.07 pp in the July IPCA. Furthermore, some products and services related to these sub-items, such as tires (1.68%), voluntary excess (1.63%) and car repair (0.67%), had a similar behavior. The 5.01% increase in tolls was influenced by adjustments in several toll plazas, as of July 1st, in São Paulo (6.47%) and in Curitiba (1.00%).

In Food and beverages (0.60%), food at home changed from 0.33% in June to 0.78% in July, mainly due to increases in tomatoes (18.65%), chicken in pieces (4.28%), long-life milk (3.71%) and meat (0.77%). On a downward trend the highlights are onions (-13.51%), potatoes (-12.03%), and rice (-2.35%).

Food away from home (0.14%) slowed down compared to June (0.66%), mainly due to snacks (0.16%) and meals (0.04%), whose prices had risen by 0.24% and 0.85% in the previous month, respectively.

The negative change in the Health and personal care group (-0.65%) reflects the drop in the health insurance item (-1.36% and -0.05 pp), resulting from the -8.19% adjustment authorized by the National Agency  for Supplementary Health (ANS) on July 8, effective retroactively to May 2021 and whose cycle ends in April 2022. Thus, in the July IPCA, the monthly shares for the months of May, June and July were appropriated.

In relation to regional indices, all areas surveyed had a positive change in July. The highest index was registered in the Metropolitan Area of Curitiba (1.60%), influenced by increases in the prices of airfares (39.92%) and electricity (11.34%). The lowest result occurred in Aracaju (0.53%), due to the drop in prices of voluntary excess (-11.37%) and health insurance (-1.47%).

To calculate the July index, prices collected in the period from June 29 to July 28, 2021 (reference) were compared with those in effect in the period from May 28 to June 28, 2021 (base). It is worth notivcing that, due to the public health emergency caused by COVID-19, the IBGE suspended, on March 18, 2020, the in-person collection of prices at purchase locations. From that date onwards, prices started being collected by other means, such as surveys carried out on internet sites, by telephone or by email.
Since the beginning of July 2021, the IBGE began the gradual resumption of in-person price collection in some establishments, as described in Ordinance No. 207/2021 of the IBGE Presidency.

INPC rose 1.02% in July

The National Consumer Price Index (INPC) increased 1.02% in July, 0.42 pp above the result of June (0.60%). In the year, the indicator accumulates an increase of 5.01% and, in 12 months, of 9.85%, above the 9.22% observed in the previous 12 months. In July 2020, the rate had been 0.44%.

Food products rose 0.66% in July, above the result of June (0.47%). Non-food products increased by 1.13%, while in June they had registered 0.64%.

With regard to regional indices, all areas registered increase in July. The lowest index was seen in Rio Branco (0.61%), where the falls in the prices of onions (-18.44%) and rice (-2.24%) had an impact. The Metropolitan Area of Curitiba recorded the greatest change (1.82%), influenced by electricity (11.68%) and used cars (3.13%).

To calculate the index of the month, prices collected in the period from June 29 to July 28, 2021 (reference) were compared with prices in effect in the period from May 28 to June 28, 2021 (base). The INPC has been calculated by the IBGE since 1979 and refers to families with monetary income from 01 to 05 minimum wages, with the head being salaried, and covers ten metropolitan areas in the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília.