Official inflation rises to 0.38% in July, driven by gasoline
Inflation in July stood at 0.38 percent, up from 0.21 percent in June. The result was mainly driven by the price of gasoline, plane tickets, and electricity.
In 12 months, consumer price index IPCA, considered Brazil’s official inflation, stood at 4.5 percent, the upper limit of the Central Bank’s inflation target. The target set by the National Monetary Council is three percent, with a tolerance of 1.5 percentage points more or less.
The data was released Friday (Aug. 9) by statistics bureau IBGE. In the first seven months of the year, the IPCA stood at 2.87 percent.
Seven of the nine groups of products and services surveyed showed price rises from June to July. The biggest inflationary pressure came from transportation, which rose 1.82 percent, and represents an impact of 0.37 percentage points (p.p.).
Under transportation, the top surge was gasoline (3.15%), which had the biggest individual impact of all the products measured (0.16 p.p.). Airline tickets were 19.39 percent more expensive in July, contributing 0.11 p.p. to the IPCA.
According to IPCA Manager André Almeida, July school vacations favored the increase in airline ticket prices.
Among the declines, the price of food and drink fell by one percent in July and provided the greatest relief for inflation (-0.12 p.p.). In the group, food at home fell in price (-1.51%) for the first time in nine months.
The IPCA gauges the cost of living for families with incomes between one and 40 minimum wages. Prices are collected in Brazil’s 10 main metropolitan regions plus four municipalities in different states.
