Rio - Inflation, as measured by the General Price Index - Domestic Availability, went from 1.29% in June to 1.14% in July. According to the Brazilian Economy Institute (Ibre) at the Fundação Getulio Vargas, the reason for the drop was a reduction in wholesale prices.

Wholesale prices (IPA) account for 60% of the IGP-DI and were down 0.22 percentage points (from 1.57% to 1.35%) from June to July.

On the other hand, retail prices (IPC), which account for 30% of the IGP-DI, were up 0.18 percentage points (0.59% to 0.78%) during the same period.

Building costs (INCC), which account for 10% of the IGP-DI, rose 0.42 percentage points (from 0.70% to 1.12%) from June to July.

Agência Brasil
Reporter: Nielmar de Oliveira
Translator: Allen Bennett
08/10/2004