IPCA-15 accelerates to 0.89% and is the highest for August in 19 years

The IPCA-15 (National Consumer Price Index – Extended 15), considered a preview of official inflation (IPCA), accelerated to 0.89% in August, after standing at 0.72% in July. This was the biggest change for a month of August since 2002, when the index was 1%.

With that, the index accumulates high of 5.81% in the year and 9.3% in 12 months. In August 2020, the variation had been 0.23%. The data were released today by the IBGE (Brazilian Institute of Geography and Statistics).

The Central Bank’s target for inflation this year is 3.75%, with a margin of 1.5 percentage points more or less, that is, it can vary between 2.25% and 5.25%.

Electricity bill is high in the month

Just like last month, the IPCA-15 was pushed by the increase in the electricity bill in August. With a 5% increase in the month, electricity had the greatest individual impact on the result, accounting for 0.23 pp (percentage point) in the index.

Tariff adjustments in São Paulo, Porto Alegre, Curitiba and Belém also explain the result in August.

In the months of July and August, the red tariff flag level 2 was in force in the country, which, as of July 1, had an increase of 52% in the additional amount charged on the electricity bill. The value, which was R$6.243 for every 100 kWh consumed, rose to R$9.492.

Thus, the housing group had the biggest increase in the month: 1.97%, equivalent to 0.31 percentage point of the general index. In addition to electricity, the group was influenced by increases in the prices of bottled gas (3.79%) and piped gas (0.73%).

Fuels go up 2%

The second largest contribution to the IPCA-15 in August came from transport, with an increase of 1.11% and an impact of 0.23 pp on the index.

In this group, fuel prices (2.02%) accelerated compared to July (0.38%). The main contribution (0.12 pp) came from gasoline (2.05%), whose accumulated increase in the last 12 months was 39.52%.

The prices of ethanol (2.19%) and diesel oil (1.37%) also rose, while vehicle gas fell by 0.51%.

Airline tickets, which had risen 35.64% in July, registered a drop of 10.9% in August.

Tomato and chicken increase; rice and beans fall

Food and beverage prices rose 1.02% in the month, with an impact of 0.21 pp on the index. The increases in tomatoes (16.06%), chicken pieces (4.48%), fruits (2.07%) and long-life milk (2.07%) contributed to this acceleration.

On the other hand, there was a drop in the prices of onions (-6.46%), black beans (-4.04%), rice (-2.39%) and carioca beans (-1.52%) .

Cheapest Medicines and Health Plans

The only group to register deflation in August was health and personal care (-0.29%), which contributed with -0.04 pp to the general index. This is mainly due to the fall in the prices of personal care items (-0.67%), pharmaceutical products (-0.48%) and health plans (-0.11%).

Methodology

To calculate the IPCA-15, prices were collected between July 14 and August 13, 2021 (reference) and compared to those in effect from June 15 to July 13, 2021 (base).

The indicator refers to families with income from one to 40 minimum wages and covers the metropolitan regions of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, in addition to Brasília and the municipality. of Goiania.

The methodology is the same as the IPCA; the difference lies in the price collection period and geographic coverage.