SP accelerates inflation, rising food and transportation

Friday, 5 August 2011 00:01 - - {{hitsCtrl.values.hits}}

SAO PAULO (Reuters) - Consumer inflation accelerated in Sao Paulo in July, as prices of food and transport began falling last month for high now.

The Consumer Price Index (CPI) rose 0.30 percent in July, compared to positive bias of only 0.01 percent in June, reported the Economic Research Institute Foundation (Fipe), on Thursday.

Analysts polled by Reuters estimated rate of 0.26 percent.

The prices of food rose 0.21 percent in July, after falling 0.58 percent in June. The Transport advanced 0.25 percent now, compared to previous fall of 0.90 percent.

Food prices are returning to the sharp increases recorded recently. Part of this move is due to commodities and also the normalization of supply of some products internally. The fuel came in the fall with the harvest of sugar cane, but rebounded.

Housing costs also had greater variation, from a high of 0.35 percent in June to 0.45 percent in July.

The prices of personal expenses increased less, at 0.53 percent now, versus 0.74 percent before. The clothing fell in 0.77 percent after 1.14 percent rise the previous month.

The CPI measures the price variation in São Paulo from families with incomes up to 20 minimum wages.