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The Limit Set By The Government For ICMS On Items Such As Gasoline And Ethanol Resulted In The Decrease Of These Inputs, However, Other Products Such As Diesel Are Still In High For About 12 Months
After the government established a limit on the rates of the Tax on Circulation of Goods and Services, ICMS, on items seen as essential, it resulted in a decrease in inflation in July. The products that had the most significant reduction in their ICMS were: gasoline, ethanol, and electricity. The data was calculated based on the Broad Consumer Price Index (IPCA).
The data released by the Brazilian Institute of Geography and Statistics (IBGE) on Tuesday, the 9th, demonstrates, however, that the drop in prices of products such as gasoline and ethanol in July, driven by the reduction of ICMS, is still far from compensating for the spike in prices of many products over the last 12 months, as various items, such as gas cylinders and diesel, are still showing a strong increase, above the accumulated inflation in the period, which is 10.07%.
For example, gasoline was 15.48% cheaper than seen in July, but still has an accumulated increase of 5.64% over 12 months, while the gas cylinder, which weighs heavily on the budgets of lower-income families, has an accumulated increase of 21.36% over 12 months, despite a decrease of 0.36% in July.
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Below are the variations of some items, such as gasoline, ethanol, and diesel, which had their ICMS limited by the law sanctioned in July, along with the accumulated data for 12 months up to July:
Price Variation of Inputs, Besides Gasoline, Ethanol, and Diesel, That Had Their ICMS Limited:
In July / In 12 Months
- Gasoline: −15.48% / 5.64%
- Ethanol: −11.38% / 2.53%
- Residential electricity: −5.78% / −10.77%
- Vehicle gas: −5.67% / 2.16%
- Gas cylinder: −0.36% / 21.36%
- Mobile phone plan: 0.00% / 1.89%
- Urban public transport: 0.18% / 3.35%
- Diesel oil: 4.59% / 61.98%
Also, Below Is The List of Products That Had The Greatest Price Drop In July, Besides Gasoline and Ethanol, Compared To June:
50 items that had their ICMS reduced the most in July;
- Tomato: −23.68%
- Zucchini: −23.55%
- Potato: −16.62%
- Gasoline: −15.48%
- Carrot: −15.34%
- Ethanol: −11.38%
- Cabbage: −11.13%
- Açaí (emulsion): −11.09%
- Bell pepper: −10.90%
- Natural flowers: −9.48%
- Cauliflower: −9.43%
- Bahia orange: −8.02%
- Broccoli: −7.99%
- Makeup items: −6.68%
- Kale: −6.17%
- Passion fruit: −5.96%
- Electricity: −5.78%
- Vehicle gas: −5.67%
- Onion: −5.55%
- Plantain banana: −5.28%
- Cavendish banana: −4.50%
- Melon: −4.35%
- Black beans: −4.03%
- Cilantro: −3.92%
- Green scent: −3.59%
- Perfume: −3.42%
- Lettuce: −3.25%
- Yuca: −3.10%
- Sweet orange: −2.85%
- Personal computer: −2.63%
- Pescada fish: −2.60%
- Plumbing material: −2.55%
- Golden fish: −2.45%
- Soybean oil: −2.41%
- Guava: −2.33%
- Video game: −2.28%
- Customs broker: −2.24%
- Pear orange: −2.12%
- Physiotherapist: −2.09%
- Corvina fish: −2.07%
- Shark fish: −2.04%
- Swimwear: −1.95%
- Strawberry: −1.76%
- Carioca beans: −1.69%
- Non-textbook: −1.69%
- Yeast: −1.63%
- Mattress: −1.63%
- Notary public: −1.63%
- Fish: −1.50%
- Liquid soap: −1.41%
Other Items That Had An Increase In ICMS In July, Apart From Diesel
- Pineapple: 2.71%
- Cookie: 2.71%
- Tourist package: 2.70%
- Children’s shoes: 2.68%
- Sweet bread: 2.66%
- Nightclub: 2.62%
- Television repair: 2.46%
- Accommodation: 2.44%
- Salted and smoked pork: 2.42%
- Candies: 2.40%
- Avocado: 2.39%
- Stones: 2.31%
- Wheat flour: 2.29%
- Chicken pieces: 2.23%
- Wine: 2.23%
- Moving: 2.23%
- Mixed seasoning: 2.22%
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