Rising electricity prices drive an increase in inflation in June

Driven again by the rise in electricity prices, official inflation in the country, measured by the IPCA (Broad National Consumer Price Index), rose 0,53% in June this year – the highest result for the month since 2018, when it was 1,26%, according to data from IBGE (Brazilian Institute of Geography and Statistics). The indicator has now accumulated an increase of 3,77% since the beginning of the year and 8,35% in the last 12 months.

The price of electricity was the main factor in the increase in the month due to the activation of the red tariff flag, at level 2, which came into effect in June at a cost of R$6,243 for every 100 kW/h consumed. In May, the country operated at red flag 1, which had a lower increase, at R$4,169. However, with the worsening of the water crisis, caused by the lack of water in the main Brazilian reservoirs, the value had to be readjusted once again in the year.

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For the month of July, the ANEEL (National Electric Energy Agency) announced a new adjustment in the value of the red flag 2. The extra fare value rose 52% and increased to R$ 9,492 for every 100 kWh consumed.

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According to Arthur Santini, director of Ecori Energia Solar, Brazil needs to start focusing on diversifying its energy matrix, investing in renewable energy, especially photovoltaic energy. “Solar energy helps us to have lower costs as a whole, relieving the national electricity system, avoiding tariff flags, eliminating the need to build new thermoelectric plants and also helping the environment,” he said.

For the executive, the increase in energy prices affects not only Brazilian families, but also business owners who depend on electricity to provide their services. “It is more than necessary to approve a legal framework for renewable energy in distributed generation, which will allow the country to grow with clean energy,” concluded Santini.