The Extended National Consumer Price Index - IPCA stayed at 0.19% in August, after changing 0.24% in July. This was the lowest change for August since 2010 (0.04%). The cumulative index in the year stayed at 1.62%, well below the 5.42% registered in August 2016.

This was the smallest cumulative index in the year for August since the implementation of the Real Plan (1994). The cumulative rate in the last 12 months decelerated to 2.46%, a result below the 2.71% recorded in the immediately previous 12 months. This was the lowest cumulative change in 12 months since February 1999 (2.24%). The index changed 0.44% in August 2016. Click here to access the complete publication.

Of the nine groups of products and services surveyed in August, Food and Beverages 
(-1.07%) and Communication (-0.56%) posted a negative sign. Among the others, the groups of Transportation (1.53%) and Housing (0.57%) stood out. Having contributed with 0.27 percentage points (p.p.) to the month´s index, the former virtually offset the impact of -0.27 p.p. of the Food products group. The table below shows the results of the groups of products and services:

As a result of the record harvest, the group of Food products dropped (-1.07%) for the fourth month in a row. After falling 0.81% in July, food for consumption at home retreated 1.84%. The highlights were: carioca beans (-14.86%), tomatoes (-13.85%), crystallized sugar
(-5.90%), long-life milk (-4.26%), fruits (-2.57%) and meat (-1.75%). Every region surveyed dropped in August: from -2.75% in Goiânia to -1.16% in Fortaleza.

Having become 0.15% more expensive in July, food away from home increased 0.35% in August. Except for the metropolitan areas of Belém (-0.79%) and Curitiba (-0.54%), the others positively changed between 0.03% (Belo Horizonte) and 2.49% (Salvador).

In the group of Communication (-0.56%), mobile phone bills stood out, as they became 1.57% cheaper, on average.

Airfare, in the group of Transportation (1.53%), dropped 15.16% in August. Having changed 6.67%, fuels exerted the biggest impact on the month´s index (0.32 p.p.). The liter of ethanol became, on average, 5.71% more expensive. Gasoline rose 7.19%, due to the increase in PIS/COFINS – in force since July – and to the policy of adjustments of fuel prices. Nineteen adjustments of gasoline prices were announced during the data collection period of the IPCA in August, which added up to a cumulative increase of 3.40%. The table below shows the regional changes of gasoline and ethanol:

Still in Transportation, a pending parcel of the adjustment of 16.61% in intercity bus fare in the metropolitan area of Belém (3.59%), in force since April 7, was incorporated.

In the Housing  group (0.57%), the highlights were electricity (1.97% and 0.07 p.p. of impact) and water and sewage fees (1.78% and 0.03 p.p.). Electricity (table below) rose in most areas surveyed, mainly due to the red flag tariff in force since August 1st, representing an additional cost of R$0.03 per KWh consumed. 

Adjustments of 6.87% in Belém (7.01%) and of 8.53% in Vitória (7.81%) were registered since August 7. On the other hand, the drops in Recife (-4.73%), Salvador (-3.03%), Belo Horizonte (-2.49%), Fortaleza (-1.48%) and Goiânia (-1.36%) were due to the reduction of PIS/COFINS.

The water and sewage fee (1.78%) was influenced by the metropolitan areas of Belo Horizonte (10.58%) – in which the tariffs changed 8.69%, on average, since July 30 –, Rio de Janeiro (3.60%) – whose adjustment of 3.60% was effected on August 1st – and Vitória (1.14%), with an adjustment of 4.10% since August 22.

Having changed 1.07%, health insurance plan stood out in the group of Health and personal care (0.41%). Education (0.24%) reflected the result of the data collected in August to capture the prices practiced in the second semester of the school year. Regular courses changed 0.09%, whereas other courses (computing, languages, etc.) rose 0.87%.

The regional results stood between -0.22% in Belém and 0.45% in Brasília. In Brasília, the increase was leveraged by fuels (11.24%), highlighted by gasoline price, which rose 12.26%. In addition, electricity bills increased 3.61%. In Belém, the drops in carioca beans (-21.46%) and meat (-3.56%) stood out.

The IPCA has been calculated by IBGE since 1980. It refers to families with monthly income of one to 40 minimum wages, whatever the source, and it encompasses ten metropolitan areas in Brazil, besides the municipalities of Goiânia, Campo Grande and Brasília. In order to estimate the index of August, the prices collected from August 1st to 29, 2017 (reference) were compared with the prices in force from June 29 to July 31, 2017 (base).

INPC changes -0.03% in August

The National Consumer Price Index - INPC changed -0.03% in August, standing below the rate of 0.17% in July. The cumulative index in the year stayed at 1.27%, well below the 6.09% registered in the same period last year. Considering the last 12 months, the index decreased to 1.73%, below the 2.08% recorded in the immediately previous 12 months. The INPC posted 0.31% in August 2016.

Food products dropped 1.18% in August. In July, the result had been -0.45%. The group of non-food products changed 0.48%, above the rate of 0.45% in July.

The regional indexes changed between -0.35% (Belém) and 0.35% (Curitiba). In Belém, carioca beans retreated 21.46% and meat, 3.37%. In Curitiba, the increase was leveraged by fuel (12.52%), highlighted by the prices of gasoline (13.15%) and ethanol (9.30%). In addition, electricity bills increased 3.80%. The regional results can be found in the table below.

In order to estimate the INPC of August, the prices collected from August 1st to 29, 2017 (reference) were compared with the prices in force from June 29 to July 31, 2017 (base). The INPC has been calculated by IBGE since 1979. It refers to families with monthly income of one to five minimum wages, with a salaried head of the household. It encompasses ten metropolitan areas in the country, besides the municipalities of Goiânia, Campo Grande and Brasília.