The price of the basket of the most consumed products in the country rose 0.12% in July. The percentage was released this Friday (11) by the Brazilian Institute of Geography and Statistics (IBGE). It refers to the Extended Consumer Price Index (IPCA), the country’s official inflation.
The IPCA variation recorded in July is 0.2 points higher than the one seen last month. In June, prices fell in Brazil. The IPCA had a negative variation of 0.08%.
:: Brazil registers a general drop in prices in June ::
In 2023, the index accumulates an increase of 2.99%. In 12 months, the accumulated index is 3.99%. This is above what was seen up to June (3.16%), but within the tolerance margin of the inflation target stipulated by the government for this year.
The target is 3.25%, with a margin of 1.5 points up or down. This means that inflation can be up to 4.75%.
Of the nine groups of products and services surveyed by the IBGE to calculate the IPCA, five were raised in July. The biggest variation (1.50%) came from transport items. On the downside, the highlights were housing (-1.01%) and food and beverages (-0.46%).
The increase in the transport group, according to the IBGE, is the result of the rise in gasoline prices (up 4.75% in July). Increases were also observed in vehicle gas (3.84%) and ethanol (1.57%). The price of diesel fell by 1.37%.
:: Copom indicates new cuts of 0.5 point in the Selic ::
The fall in food items and beverages is linked to the reduction in food prices at home (-0.72%), which had already retreated in June (-1.07%). It is worth noting the declines in carioca beans (-9.24%), soy oil (-4.77%), chicken pieces (-2.64%), meat (-2.14%) and long life milk (-1.86%).
On the high side, fruits (1.91%) rose in price, especially silver banana (4.44%) and papaya (3.25%).
In the housing group, the major contribution to the price reduction came from residential electricity (-3.89%), due to the incorporation of the so-called Itaipu bonus. The bonus is a reduction in energy bills due to the plant’s positive financial results.
In 13 of the 16 regions surveyed for the IPCA, there were price increases in July. The biggest variation was in Porto Alegre (0.53%), due to the rise in gasoline prices (6.98%). The smallest variation was registered in Belo Horizonte (-0.16%), influenced by the 17.50% decreases in urban buses and 4.30% in residential electricity.
negative INPC
The National Consumer Price Index (INPC), also released this Friday by the IBGE, was -0.09% in July, a change close to that recorded in the previous month (-0.10%).
:: Basic basket prices fall in most capitals, and minimum wage increases purchasing power ::
In the year, the INPC accumulates an increase of 2.59% and, in the last 12 months, of 3.53%. The INPC is the index on which the minimum wage adjustment is based.
Editing: Vivian Virissimo
