Rio - Inflation during the period between July 14 and August 13, gauged by the Getúlio Vargas Foundation's (FGV) Consumer Price Index (IPC-S), was 0.80%, 0.04% higher than for the previous period.

According to the FGV's Brazilian Economics Institute (IBRE), the Food and Housing groups exerted the biggest impact on the index. Together, the two groups accounted for 78% of the composition of the IPC-S during the period.

The Food group rose from 0.74% to 1.06%, led by Vegetables and Legumes (7.39%), Sweeteners (5.83%), and Fish (0.74%), among other items that experienced price increases. Their aggregrate weight in family food expenditures in the 12 capitals covered by the survey was 57%.

The FGV economists explained that the Housing group, even though it showed deceleration, declining from 1.25% to 1.02%, exerted the biggest single influence on the IPC-S, on the order of 0.32%.

Among the 12 capitals surveyed, inflation accelerated in 7. The highest rate was registered in Recife (1.38%), and the lowest, in Fortaleza (0.19%).

Agência Brasil
Reporter: Alana Gandra
Translator: David Silberstein
08/24/2004