The Broad Consumer Price Index (IPCA) rose 0.24% in June, retreating slightly over the previous month. The data were released by the Brazilian Institute of Geography and Statistics (IBGE) this Thursday (10).
The result was mainly influenced by the residential electricity, which, with the validity of the Red Tariff Flag level 1, recorded an increase of 2.96% in the month, being the subitem of the highest individual impact on the index (0.12 pp).
The Housing Group (0.99%) was also influenced by high water and sewage rate (0.59%). In the month, the group contributed 0.15 pp to the general index.
On the other hand, the food and beverage group recorded the first drop (-0.18%) in 9 months, contributing -0.04 pp at the general rate. The group was influenced by home feeding, which came from 0.02%in May to -0.43%in June, with falls in the chicken egg (-6.58%), rice (-3.23%) and fruits (-2.22%). On the high side, the tomato (3.25%) stands out.
In the year, accumulated inflation is 2.99% and, in the last 12 months, 5.35%. The number was above the ceiling of the target and the Central Bank must send a letter to the National Monetary Council with explanations.
What is the IPCA
The Broad National Consumer Price Index (IPCA) measures inflation in Brazil, ie the variation of prices of a set of products and services consumed by Brazilian families. It is calculated monthly and covers about 90% of families living in urban areas in the country, with income between 1 and 40 minimum wages.
