Gasoline drops; milk, meals and diesel rise: see this yr’s worth dance

Long-life milk (79.79%), diesel (37.28%) and food items (such as vegetables, fruits and beans) are among the ones that weighed the most on Brazilians’ pockets from January to August this year, according to with the IPCA-15 (National Consumer Price Index – Extended 15) of August, an indicator known as inflation preview.

The highlights among the biggest drops are electricity (-20.12%), ethanol (-19.20%) and gasoline (-14.91%). In total, considering all the groups analyzed, the general balance of the index is deflation of 0.73%, the lowest value since November 1991.

Price of a liter of milk drops, but it is still more expensive than gasoline

What’s happening? experts heard by UOL say that the increase in milk prices was influenced by factors such as off-season, food and feed prices, fertilizer costs and diesel prices.

The high production costs also justify the increase in the price of food – including diesel, used in the trucks that transport the fruit, and fertilizers, which became more expensive with the war between Russia and Ukraine, as the two countries are major exporters of agricultural inputs.

The drop in energy, ethanol and gasoline prices is related to the reduction in the ICMS rate on these services. In the case of electric light, Aneel (National Electric Energy Agency) approved extraordinary tariff revisions for several distributors that operate in areas covered by the index, reducing tariffs as of July 13th.

Biggest highs (January to August)

• Long life milk: 79.79%
• Cucumber: 78.61%
• Melon: 64.16%
• Strawberry: 60.49%
• Onion: 56.57%
• Watermelon: 50.93%
• Mango: 47.88%
• Diesel oil: 37.28%
• Infant food: 34.49%
• Carioca beans (brown): 33.99%

Biggest casualties (January to August)

• Lime orange: -26.79%
• Tomato: -20.96%
• Residential electricity: -20.12%
• Ethanol: -19.20%
• Lemon: -17.98%
• Mutton: -17.39%
• Avocado: -16.80%
• Gasoline: -14.91%
• Banana-apple: -12.59%
• Pepper: -12.08%

Prices in the last 12 months

In the last 12 months, the highlights among the highest increases are airfare (75.34%), long-life milk (69.73%) and diesel (58.81%).

Among the ten biggest casualties, residential electricity and rice stand out.

Highest highs (August 2021 to August 2022)

• Papaya: 85.02%
• Onion: 79.98%
• Airfare: 75.34%
• Watermelon: 71.19%
• Long life milk: 69.73%
• Melon: 63.32%
• Diesel oil: 58.81%
• Ground coffee: 53.22%
• Tangerine: 48.89%
• Transport by application: 48.8%

Biggest casualties (August 2021 to August 2022)

• Mutton: -19.26%
• Zucchini: -14.03%
• Residential electricity: -12.37%
• Black beans: -12.22%
• Lemon: -10.41%
• Video game console: -8.01%
• Coriander: -7.55%
• Garbage bag: -7.47%
• Rice: -6.59%
• Acai (emulsion): -6.55%

How is the IPCA-15 calculated?

According to the IBGE, the price survey was carried out between July 14 and August 12, 2022. The results were compared to the prices in force between June 14 and July 13, 2022.

The indicator refers to families with income from 1 to 40 minimum wages and covers the metropolitan regions of Rio de Janeiro, Porto Alegre, Belo Horizonte, Recife, São Paulo, Belém, Fortaleza, Salvador and Curitiba, in addition to Brasília and the municipality from Goiania.

The methodology used is the same as the IPCA, the difference is in the price collection period and geographic scope.

Source: Uol