IPCA: electricity bill rises and is again above inflation

The HI(Broad National Consumer Price Index), considered the official measure of inflationin Brazil, ed a increase of 0,38% in July, according data released by IBGE(Brazilian Institute of Geography and Statistics (IBGE) this Friday (09).   

The result represents an acceleration compared to June, when the IPCA rose 0,21%. THE Transport group was mainly responsibledue to the advance of inflation, with a rise of 1,82%, which contributed 0,37 pp (percentage point) to the general rate.

Next came the Housing group (0,77% and 0,12 pp), which was mainly influenced by the increase in residential electricity (1,93% and 0,08 pp). As in June, the increase in tariffs in July was above inflation.

Last month, the yellow tariff flag came into force and which added R$1,885 for every 100 kWh consumed. In August, the flag returned to the green level, there is no longer any extra charge on the electricity bill.

On year to date IPCA rose by 2,87% and, in the last 12 months, by 4,5%– above the 4,23% observed in the previous 12 months and reaching the target ceiling defined by the CMN(National Monetary Council).

How is the IPCA calculated? 

The IPCA has been calculated by IBGE since 1980and refers to families with monetary income of 1 to 40 minimum wages, who live in ten metropolitan regions in the country, in addition to the municipalities of Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju and Brasília. 

To calculate the month's index, prices collected in the period from June 29 to July 29, 2024 (reference) were compared with the prices in force in the period from May 30 to June 28, 2024 (base).

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