Electric energy contributes to August inflation being the highest of the century  

Tariff adjustment in some regions and the use of red flag 2 in the period explain the segment's inflationary increase
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The IPCA (Broad Consumer Price Index), which measures official inflation in the country, accelerated 0.87% in August, after remaining at 0.96% in July. This is the highest result for the month since the year 2000 (1.31%).

Inflation was driven by the rise in prices in eight of the nine segments analyzed by the IBGE (Brazilian Institute of Geography and Statistics), including housing, due to the 1.1% increase in the price of electricity.

The result obtained by the sector is a direct consequence of the tariff adjustments of 9.60% and 8.92% carried out in Vitória and Belém, both from August 7th.

The increase was also driven by the residual contribution referring to the adjustment of 11.38% at one of the concessionaires in São Paulo, on July 4th.

Read too: High electricity bills will boost the solar energy market.

Furthermore, the red tariff flag, at level 2, which added R$ 9.49 to every 100 kWh consumed in the months of July and August, was also one of the justifiable factors for the inflationary increase. 

It is worth highlighting, however, that the increase of 1.1% is lower than that recorded in July, when the sector was the main factor causing inflation in the country, reaching a 7.88% increase compared to June.

General numbers

With the new update, the IPCA now accumulates an increase of 5.67% in 2021 and, in the last 12 months, 9.68%, a value above the 8.99% recorded in the immediately previous 12 months. In August last year, the monthly variation was 0.24%.

The biggest change (1.46%) came from the transport segments, due to the increase of 2.96% in fuel prices, above that recorded in the previous month (1.24%). In the month, gasoline rose 2.8%. Other fuels also rose: ethanol (4.50%), vehicle gas (2.06%) and diesel oil (1.79%).

To make the calculation, IBGE compared price data collected in the period from July 29th to August 27th, 2021 with prices in force between June 29th and July 28th, 2021.

Check out the results for each of the sectors surveyed in August below:

  • Food and beverage (1,39%)
  • Housing (0.68%)
  • Household items (0.99%)
  • Clothing (1,02%)
  • Transport (1,46%)
  • Health and Personal Care (-0.04%)
  • Personal Expenses (0.64%)
  • Education (0.28%)
  • Communication: (0.23%)
Picture of Henrique Hein
Henry Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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