Official June inflation is negative at 0.08%

The month of June had deflation, that is, there was a decrease in prices compared to May. The official inflation – calculated by the IBGE (Brazilian Institute of Geography and Statistics) – was -0.08%. It is the first time in the year that inflation has been below zero. The last time inflation dropped was in September last year. This is also the lowest result of the Extended National Consumer Price Index (IPCA) for a month of June since 2017 – when the index was -0.23%. This is also the lowest result of the Extended National Consumer Price Index (IPCA – the country’s official inflation) for a month of June since 2017, when the index was -0.23%. The result, released this Tuesday (11) by the IBGE, in Rio de Janeiro, represents the fourth consecutive month in which inflation loses strength. In May, the IPCA was 0.23%. In the year, the index adds up to 2.87% and, in the last 12 months, 3.16%, below the 3.94% observed in the immediately previous 12 months. negative field were food and beverages (-0.66%) and transportation (-0.41%), which contributed with -0.14 and -0.08 percentage points (pp) in the general index, respectively. Factor of influence According to the IBGE, food and beverages and transport are part of the group with the greatest influence within the household consumption basket. Together, they represent around 42% of the IPCA. The food and beverages group was mainly influenced by the decline in food prices at home (-1.07%). Contributed to this the falls of soy oil (-8.96%), fruits (-3.38%), long-life milk (-2.68%) and meats (-2.10%). The cost of eating out went up, however, with less force (0.46%) compared to the previous month (0.58%). “In recent months, prices for grains such as soybeans have fallen. This directly impacted the price of soy oil and indirectly the prices of meat and milk, for example. These commodities are inputs for animal feed, and a lower price helps to reduce production costs. In the case of milk, there is also a greater offer on the market”, explained André Almeida, research analyst, on the IBGE website. and those used (-0.93%). This behavior has to do with the federal government’s measure to lower the price of new cars. “The new car sub-item had the greatest individual impact in the month, with -0.09 pp. This reduction in prices is related to the discount program for the purchase of new vehicles, launched on June 6 by the federal government. This may also be related to the fall in the prices of used cars”, explains the IBGE. In the behavior of prices during May, the result of fuels (-1.85%) also stands out, with falls in diesel oil (-6.68%), ethanol (-5.11%), vehicular gas ( -2.77%) and gasoline (-1.14%). “Gasoline is the sub-item with the highest individual weight in the IPCA, with 4.84%. The drop in gasoline had an impact of -0.06 pp”, highlights Almeida. On the side of upward price pressure, the largest contribution came from the Housing group (increase of 0.69% and impact of 0.10 pp). The major contribution came from residential electricity (1.43%), due to readjustments applied in four areas covered by the index: Belo Horizonte, Recife, Curitiba and Porto Alegre. The water and sewage rate (1.69%) was also impacted by readjustments applied in Belém, Curitiba, São Paulo and Aracaju. The calculation of the IPCA covers families with incomes from one to 40 minimum wages. More deflation The IBGE also released today the National Consumer Price Index (INPC), which fell by 0.10% in June (first deflation since September 2022) and accumulates 3% in the last twelve months. The INPC covers the cost of living for families with an income of one to five minimum wages. * Matter amended at 10:37 am to add information

Agência Brasil