Rio, June 24, 2003 (Agência Brasil - ABr) - Inflation, as measured by the Broad Consumer Price Index-15 (IPCA-15), dropped to 0.22% in June, as against the 0.85% registered in May. According to the Brazilian Institute of Geography and Statistics (IBGE), the index was affected by the deceleration in food price readjustments - they rose 0.30% in June, compared with 0.64% in May - as well as a significant fall, 4.36%, in gasoline prices at filling stations.

The IPCA-15 gives a preliminary reading of the Broad Consumer Price Index (IPCA), which is used by the government to establish targets for inflation. The IPCA-15 was also lower than the 0.61% rate registered by the IPCA in May.

Among the regions covered by the survey, two showed deflation: Brasília (-0.83%) and Curitiba (-0.14%). Prices rose in São Paulo (0.19%) and Rio de Janeiro (0.23%). The highest rate of inflation in June was registered in Recife (0.80%).

With June's result, the IPCA-E, which measures cumulative inflation over a period of three months, stood at 2.22% in the second quarter of the year, well below the index for the first quarter, 5.40%. The IPCA-E refers to April (1.14%), May (0.85%), and June (0.22%). For the year, the index has risen 7.75%, and, over the past 12 months, 17.12%.

The methodology used to calculate the IPCA-E is the same as for the IPCA. The difference is that the IPCA covers the calendar month, while the IPCA-15 covers the period from May 16 to June 12. (DAS)