With falling food prices, inflation stands at 0,26% in July, says IBGE.

247 - The country's official inflation rate was 0,26% in July, slightly above the rate in June (0,24%). The data was released this Monday (12) by the Brazilian Institute of Geography and Statistics (IBGE), through the National Consumer Price Index (IPCA).

For the third consecutive month, the main factor putting pressure on the index was residential electricity, which alone accounted for 0,12 percentage points of the result. "From January to July, electricity accumulated an increase of 10,18%, being the main individual impact on the accumulated IPCA," said Fernando Gonçalves, research manager.

Without the contribution of electricity bills, the IPCA (Brazilian consumer price index) for July would have been 0,15%, according to IBGE (Brazilian Institute of Geography and Statistics). The weight of this item reflects the red flag level 1, in effect since June, which adds R$ 4,46 to every 100 kWh consumed, in addition to tariff adjustments in different capitals, such as São Paulo (10,56%), Curitiba (2,47%) and Porto Alegre (1,48%).

With the July result, the IPCA (Brazilian consumer price index) accumulates an increase of 3,26% in 2025. In the last 12 months, inflation is at 5,23%.

Increase in services and airfares. 

Besides electricity, other groups also contributed to the month's increase. The Personal Expenses sector rose 0,76%, influenced by gambling, which increased by 11,17% — the third largest individual impact on the index.

In Transportation, inflation accelerated from 0,27% in June to 0,35% in July, with airfares standing out, rising 19,92% and representing the second largest individual impact in the month (0,10 pp).

Conversely, fuel prices fell by 0,64%, with reductions in the prices of ethanol (-1,68%), gasoline (-0,51%), diesel oil (-0,59%) and vehicular gas (-0,14%).

Food prices fall for the second month. 

Food and beverages saw a 0,27% decrease, helping to contain inflation. This is the second consecutive month of decline for the group, which had registered -0,18% in June.

Food consumed at home fell by 0,69%, with notable reductions in the prices of potatoes (-20,27%), onions (-13,26%) and rice (-2,89%). On the other hand, food consumed away from home accelerated from 0,46% to 0,87%, driven by snacks (1,90%).

"Without the drop in food prices, inflation for the month would have been 0,41%," noted Fernando Gonçalves.

Other groups 

The Housing group saw an increase of 0,91%, also influenced by adjustments in water and sewage rates, such as in Salvador (2,16%), Brasília (0,57%) and Rio Branco (0,14%).

Health and personal care rose 0,45%, with increases in personal hygiene (0,98%) and health plans (0,35%), following authorization from the National Supplementary Health Agency (ANS).

Clothing saw a decrease of 0,54%, with women's clothing (-0,98%) and men's clothing (-0,87%) showing the most significant declines.

IPCA by region 

The largest regional variation was recorded in São Paulo (0,46%), due to electricity (10,56%) and airfares (13,56%).

The smallest variation occurred in Campo Grande (-0,19%), driven by drops in potatoes (-33,84%) and electricity (-1,39%).

INPC rises 0,21% in July 

The National Consumer Price Index (INPC), which measures inflation for families with incomes of 1 to 5 minimum wages, rose 0,21% in July.

The year-to-date figure is 3,30%, and the 12-month figure is 5,13%, down from 5,18% in the previous period.

Food prices as measured by the INPC (National Consumer Price Index) fell 0,38% in July, following a 0,19% decline in June. Non-food prices rose 0,41%.

Among the regions, São Paulo (0,56%) had the highest increase and Campo Grande (-0,27%) the lowest.