Brazil's broad consumer price index fell 0.32% in August, leaving annual inflation at 4.22%. An Itaipu credit on household electricity bills accounted for a substantial part of the decline. Transport and food also became cheaper. Personal expenses and clothing rose, however, so the fall in the overall index did not extend to every spending group.
Brazil's statistics institute IBGE reported a 0.32% August decline in the broad consumer price index, IPCA. Prices remained 4.22% above their level a year earlier. The monthly average therefore fell even as the annual comparison stayed positive. Housing, transport, food and communication contributed declines. Differences between spending categories mean the aggregate fall did not represent a reduction in every product's price.[1], [2]
Housing prices declined 1.87%, with household electricity down 7.63%. A surplus associated with the Itaipu hydroelectric plant was returned to consumers through a credit on August bills. That billing adjustment lowered the electricity component and, through it, housing and the overall index. Its application to a particular month's invoices forms part of the explanation for the timing of the measured decline.[1]
Transport prices fell 0.86% and food and drink declined 0.34%. Airline tickets became 13.17% cheaper, while several motor fuels also fell in price. Other categories moved in the opposite direction: personal expenses rose 1.30% and clothing increased 0.12%. Together, the electricity credit, cheaper transport and food, and the categories still rising determined the consumer basket's overall August result.[1]
