Food inflation more than doubled in August

posted on 8/25/2021 10:09 AM

Inflation is not expected to slow down anytime soon, at least in the financial market’s forecast and by what has been shown in the Extended National Consumer Price Index (IPCA). This Wednesday (25/8), the Brazilian Institute of Geography and Statistics (IBGE) released a new IPCA-15 with data collected between July 14th and August 13th. The index registered a percentage of 0.89%, 0.17% above the rate registered in July (0.72%).

According to the IBGE, this was the biggest change for a month of August since 2002, when the index was 1.00%. “In the year, the index accumulated a high of 5.81% and, in 12 months, 9.30%, above the 8.59% observed in the immediately previous 12 months”, says a note from the Institute. In comparison with the same period in 2020, the variation was 0.23%.

Data from the IPCA-15 for August show that, of the nine groups of products and services surveyed, eight had rises in the period. The housing sector exerted the greatest impact on the index, representing 0.31% of the total percentage, with a variation of 1.97%. One explanation is that it is, once again, influenced by the rise in electricity (5.0%), which accelerated compared to July (4.79%). Another item that, according to IBGE, influenced the high impact of the housing sector was the increase in the price of cooking gas cylinders (3.79%).

The transport sector also continued to grow, with an impact of 1.11% on the IPCA-15, 0.23% more than in the previous month (1.07%).

Also according to IBGE data, the food and beverage sector increased more than double, from 0.49% to 1.02% in August. Health and personal care fell by 0.29%. “The other groups were between communication, with 0.19%, and 1.05% of residence items”, says the note.