Inflation measured by the Extended National Consumer Price Index (IPCA), which measures the readjustment in prices for families with income between one and 40 minimum wages, rose 0.96% in July, the highest result for the month since 2002, when the increase was 1.19%. The data were released today (10), in Rio de Janeiro, by the Brazilian Institute of Geography and Statistics (IBGE).

In the year, the indicator accumulates an increase of 4.76% and, in 12 months, 8.99%, above the registered in the immediately previous 12 months (8.35%). It is the highest rate since May 2016, when the IPCA was 9.32% in 12 months. In July last year, the monthly rate was 0.36% and, in June 2021, 0.53%.

According to the IBGE, eight of the nine groups surveyed showed high in the month, with the greatest impact coming from the 3.10% increase in housing, a group pressured by the 7.88% rise in electricity.

By region, the tariff adjustment for electricity was 11.38% in São Paulo, 8.97% in Curitiba and 9.08% in one of the concessionaires in Porto Alegre. In 12 months, electricity accumulates readjustment of 20.09%.

According to the research analyst, André Almeida, this cost is often passed on by commerce to the final consumer, with the great weight of electricity.

“In addition to the readjustments in tariff prices in some areas covered by the index, we had a 52% increase in the additional value of the level 2 red tariff flag across the country. Before, the increase in this banner was, approximately, R$ 6.24 for each 100 kWh consumed and, as of July, this increase became R$ 9.49”, he explained.

He then highlighted the increase in the transport group, which rose 1.52%, driven by airline tickets, which increased 35.22% after falling 5.57% in June. Transport per application went from -0.95% to 9.31% from one month to the next and car rental went from 3.99% in June to 9.34% in July.

Fuels accelerated 1.24% in July, after rising 0.87% in June. Gasoline had an increase of 1.55% in the month and accumulates readjustment of 39.65% in 12 months. Ethanol dropped 0.75% in the month, but increased by 57.27% in 12 months. Diesel oil rose 0.96% in the month and 36.35% in 12 months.

Food and drinks 

The food and beverage group rose 0.60%, above the rate of June (0.43%). The item food at home changed from 0.33% in June to 0.78% in July, driven by the rise of tomatoes (18.65%), chicken pieces (4.28%), long life milk (3 .71%) and meat (0.77%). The falls in the month were verified in the price of onion (-13.51%), English potato (-12.03%) and rice (-2.35%).

The accumulated in 12 months was 42.96% for tomatoes, 34.28% for meat, 21.88% for chicken pieces and 11.29% for long life milk. Onions had a 40.38% drop in 12 months and potatoes decreased by 19.71%. Rice, despite the fall in the month, is up 39.69% in 12 months. According to Almeida, several factors contributed to the rise in inflation.

“Over the last 12 months we had an increase in fuel and electricity, items that weigh heavily on families' budgets. Gasoline is the item with the greatest weight in the IPCA. Meats too, all these factors contributed to this increase”, explained the analyst.

The only group that saw prices drop in July was healthcare and personal care. It was 0.65% cheaper with the reduction in the prices of health plans (-1.36%), after the authorization of the National Supplementary Health Agency (ANS) of the negative adjustment of -8.19%, justified by the decrease in the use of supplementary health services during the pandemic.

By region, among the 16 capitals surveyed, the highest index was recorded in Curitiba (1.60%) and the lowest result was in Aracaju (0.53%).

INPC accelerates 1.02% 

The National Consumer Price Index (INPC), which measures inflation for families with incomes ranging from one to five minimum wages, accelerated to 1.02% in July, after rising 0.60% in June. The increase accumulated in 12 months is 9.85%, above the 9.22% of the 12 immediately previous months. In July last year, the indicator was 0.44%.

The 12-year index in the INPC has been on a rising curve since July 2020, when the accumulated rate was 2.69%.