Residential electricity accumulates an increase of 10,18% between January and July

Brazil's official inflation, measured by the IPCA (Broad National Consumer Price Index), was 0,26% in July – a figure slightly higher than the 0,24% recorded in June. Year-to-date, the increase is 3,26%, while over the last 12 months it has reached 5,23%, according to data released by the IBGE (Brazilian Institute of Geography and Statistics).

For the third consecutive month, the largest individual impact on the index came from residential electricity, contributing 0,12 pp (percentage point) to the month's final result. "Without the contribution from electricity, the July IPCA result would have been 0,15%," said IPCA manager Fernando Gonçalves.

The increase in the segment is due, among other factors, to the maintenance of the red tariff flag level 1 — which adds R$4,46 to every 100 kWh consumed on consumers' electricity bills. Furthermore, July also saw significant tariff adjustments in two of the country's most populous capitals: a 13,97% increase in São Paulo (SP) and a 14,19% increase in Porto Alegre (RS).

"From January to July, residential electricity prices rose 10,18%, accounting for the largest single impact on the IPCA's cumulative result. This variation is the largest for the period since 2018, when the cumulative increase was 13,78%," explains Gonçalves.

The calculation of HICP considers families with incomes ranging from 1 to 40 minimum wages, residing in the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, São Paulo, Curitiba, Porto Alegre, as well as the Federal District and the cities of Goiânia, Campo Grande, Rio Branco, São Luís, and Aracaju. The next result, for August, will be released on September 10.

All-time high

The rise above inflation in electricity bills in the first seven months of 2025 has been the trend in Brazil in recent years. Abraceel study (Association of Electric Energy Traders), for example, reveals that between 2010 and 2024 the tariff in the regulated market rose 177%, exceeding inflation in the same period, which reached 122%.

In other words, electricity bills have grown 45% above official inflation over the past 15 years. The study also analyzed the evolution of indicators over a longer period, dating back to 2003. During this period, residential electricity bills grew 269%, while the IPCA (Consumer Consumer Price Index) rose 218%.

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