Official inflation rises 1,11% in preliminary June figures, the highest increase since 1996.
Brazil's National Consumer Price Index-15 (IPCA-15), considered a preview of official inflation, rose 1,11% in June, compared to a 0,14% increase in the previous month, according to data from the Brazilian Institute of Geography and Statistics (IBGE); the accumulated rate for the year is 2,35%, above the 1,62% recorded in 2017.
Vitor Abdala, reporter for Agência Brasil - The National Consumer Price Index 15 (IPCA-15), which measures the preliminary official inflation rate, registered a rate of 1,11% in June, a sharp increase compared to the preliminary figures for May (0,14%) and June (0,16%). This was the highest IPCA-15 rate for a June since 1996, when the same index was recorded.
The IPCA-15 (Brazilian consumer price index) accumulated in the quarter was 1,46%, above the 0,61% rate recorded in the same period of 2017. With this, the accumulated rate for the year is 2,35%, above the 1,62% recorded in 2017. In 12 months, the IPCA-15 accumulates an inflation rate of 3,68%, above the 2,7% recorded in the previous 12 months.
The rise in the rate was mainly driven by food and transportation. The food group saw a price increase of 1,57% in the month, driven by foods such as potatoes (45,12%), onions (19,95%) and tomatoes (14,15%).
Meanwhile, transportation experienced inflation of 1,95%, driven by the rise in gasoline prices (0,81%), which had the largest individual impact on the preliminary IPCA, followed by ethanol (2,36%) and diesel fuel (3,06%).
The housing group also had a significant impact on the index, with a rate of 1,74%, mainly due to adjustments in electricity tariffs (5,44%), which increased in the cities of Belo Horizonte, Recife, Fortaleza, Porto Alegre, and Salvador.
The IPCA-15 was calculated based on prices collected between May 16 and June 13, therefore during the national truckers' strike, which caused shortages in several cities across the country.