Boosted by the change in food prices, Brazil’s inflation—as measured by the National Broad Consumer Price Index, or IPCA—closed out the month of June up 1.26%, the highest for the month since 1995’s 2.26%. In June last year, the rate was reported at a negative 0.23%.
The figures were released today (Jul. 6) by the Brazilian Institute of Geography and Statistics (IBGE).
Year-to-date, the rate rose to 2.60%, therefore above the 1.18% in the same period last year. As for the 12-month span, the IPCA increased to 4.39%, against the 2.86% reported in the 12 months preceding it.
Chief among the factors pulling up inflation this month were food and drinks, with a 2.03% hike in June. They account for 0.5 percentage points of the month’s total composition.
The IPCA serves as a gauge for the inflation target set by the National Monetary Council (CMN)—4.5% this year, plus or minus 1.5 percentage points.
The IPCA has been calculated by IBGE since 1980, and surveys families with an income ranging from one to 40 minimum wages across ten metropolitan regions and six municipalities.