It was the first negative rate since June 2023, when the index fell by 0.08%; in the year, the accumulated inflation is 2.85% and, in the last 12 months, 4.24%.
AdvertisementThe National Consumer Price Index (IPCA), the country’s official inflation indicator, showed deflation of -0.02 in August, after registering an increase of 0.38% in July, the Brazilian Institute of Geography and Statistics (IBGE) reported on Friday (9).
This was the first negative rate since June 2023, when the index fell by 0.08%.In the year, the accumulated inflation is 2.85% and, in the last 12 months, 4.24%.
The monthly figure came in even lower than expected by analysts consulted by Reuters, who expected an almost stable IPCA at +0.01%. In the year-on-year comparison, an IPCA of 4.29% was expected.
According to IBGE, the less intense inflation rate in the month was driven by residential electricity prices and by food and beverages.
The research manager, André Almeida, highlighted in a note that the change in the electricity tariff band was the predominant factor in explaining the decline in the Housing group in the index.
“The main influence came from residential electricity, with the return to the green tariff band in August, where there is no additional charge on electricity bills, after the switch to the yellow band in July,” he points out.
Continues after advertisingIn the Food and Beverages group (-0.44%), food at home (-0.73%) showed a second consecutive decline, after a 1.51% drop in July.
There were declines in the prices of English potatoes (-19.04%), tomatoes (-16.89%), and onions (-16.85%).“The main factor that contributed to the price drop was a higher supply of these products in the market due to milder weather in the middle of the year, which favors the production of these foods, with a higher harvest rate and intensification of the crop,”
Almeida pointed out.On the upside, papaya (17.58%), silver banana (11.37%), and ground coffee (3.70%) stood out.
Continues after advertisingMeanwhile, food away from home (0.33%) had a variation below the previous month (0.39%).
The snack item decelerated from 0.74% in July to 0.11% in August, while the meal accelerated from 0.24% to 0.44%.
The Transportation group showed stability (0.0%) in the month, largely due to price movements in opposite directions in its main sub-items. In fuels, vehicle gas (4.10%), gasoline (0.67%), and diesel (0.37%) prices rose, while ethanol fell by 0.18%.
In addition, airfares saw price declines (-4.93%).“The drop in airfare prices in August can be explained by a movement contrary to that observed in July, a month of school holidays, when airfares are more in demand due to family trips,” the research manager explained.
Continues after advertisingINPCThe National Consumer Price Index (INPC) fell by 0.14% in August, a figure 0.40 percentage points below the result observed in July (0.26%). In the year, the INPC has accumulated an increase of 2.80% and, in the last 12 months, 3.71%, below the 4.06% observed in the immediately preceding 12 months.
In August 2023, the rate was 0.20%.Food products fell by 0.63% in August, a second consecutive decline, after a 0.95% drop in July.
Meanwhile, the variation of non-food items slowed from 0.65% in July to 0.02% in August.Regionally, Vitória recorded the highest increase (0.13%), due to the water and sewage rate (4.04%).
The lowest variation was observed in São Luís (-0.58%), due to the price declines of tomatoes (-23.78%) and residential electricity (-4.50%).
