IPCA: Food and fuel contain electrical energy pressure, says IBGE

The drop in food prices (-0.24%) and fuel (-0.48%) in June, important items in the IPCA (Broad National Consumer Price Index), helped contain the pressure of electricity on the index, explained this Friday, 10th, the IPCA manager at IBGE, Fernando Gonçalves.

By groups, Food and beverages, which represents 21.75% of the IPCA, was the only one to show a negative change in June (-0.24%) and had the biggest downward impact on the index (-0.05 percentage points)

"The drop in Food and beverages may reflect a combination of factors, with the relief coming from fuel, which is already on a downward trajectory and helping to reduce costs for the end consumer, a possible return of previous increases and, above all, greater supply of some items, such as coffee for example, with expectations of a better harvest putting pressure on prices", he said during a press conference.

The IPCA closed June with an increase of 0.16%, after an increase of 0.58% in May, reported the IBGE (Brazilian Institute of Geography and Statistics). The June rate was 0.42 percentage points below that recorded in the previous month.

Gonçalves also highlighted that the food result was the lowest for the months of June since 2023, but highlighted that some products that continued to increase in June, such as potatoes, garlic and carioca beans, which shows a heterogeneous behavior within the group.

Housing presented the biggest increase (0.63%) and the biggest positive impact (0.10 percentage points), influenced by the behavior of residential electricity, which went from 3.67% to 1.53%, still appearing as the main individual impact on the month's result (0.06 p.p.).

Individually, Rio de Janeiro recorded the largest variation, of 5.61%, with the return of the 15.10% adjustment on tariffs in one of the concessionaires.

Inflation rises 0.16% in June with relief in food and fuel | MARKET OPENING

The diffusion of the index also slowed down: the proportion of sub-items with price increases fell from 65% in May (245 sub-items) to 54% in June (202 sub-items), with a reduction in both food and non-food items, reinforcing the slowdown in inflation in the month.

In regional indices, Brasília presented the biggest change in the month (0.52%), influenced by items such as airfare and gasoline. At the other extreme, Recife registered a drop of 0.20%, pressured, among other factors, by the decline in items such as tomatoes and gasoline.

According to IBGE, with the IPCA result in June, accumulated inflation for the year rose to 3.36%.

In the 12 months up to June, the IPCA was 4.64%, below the 4.72% observed up to May. In June 2025, the index had registered a change of 0.24%, which contributed to the slowdown in the 12-month index from May to June.

Electricity bills will rise to triple the IPCA in 2026

Source: CNN