With the result, the cumulative rate in twelve months has also gone down to 6.5%, standing level with the inflation target ceiling set by the government. Target inflation for 2014 is 4.5% with tolerance of plus two percentage points. In June, inflation had exceeded the ceiling for the annualized rate, reaching 6.52% for the past 12 months.
In the first seven months of 2014, IPCA closed out at 3.76%, up from 3.18% in the same period of 2013. In a year-over-year perspective, the rate in July this year (0.01%) went down from a year ago (0,03%).
Food Prices
The food price index calculated monthly by the Food and Agriculture Organization of the United Nations (FAO) has declined for the fourth consecutive month in July and posted the lowest figures since January. According to data released by the agency, the index stood at 203.9 points last month, down 2.1% from June and 1.7% July on July.
According to the organization, the price index decline can be mapped back to lower prices of corn, wheat and oilseeds. The prices of these commodities declined due to their growing stockpiles and no foreseeable risks to their supplies in the next months.
The FAO’s price index is measured using prices of a basket of commodities and is divided into the groups of cereals, vegetable oils, dairy, meats and sugar. According to the organization, meat and sugar prices went the opposite direction and rose in July.
Oil Output
Brazilian oil output reached a record 2.246 million barrels per day (bpd) in June and exceeded previous record of 2.231 million bpd in January 2012, the National Agency of Petroleum (ANP) reported. Output is up 2.6% from May 2014 and 6.9% June on June.
Natural gas output reached 88.6 million cubic meters (m³), up 2.4% from May’s production of 84.5 million m³ per day, and up 8.2% June on June.
Overall, oil and natural gas output in Brazil reached 2.79 million barrels of oil equivalent per day (boe/d) in June, exceeding May’s output of 2.721 million barrels.
Pre-salt output increased by 6.2% from May and reached 583,200 boe/d, with 478,000 barrels of oil and 16.7 million m³ of natural gas.
According to the ANP, the usage of natural gas in the month reached 95.1%. The volume of burnt natural gas in June was around 4.3 million m³ per day, a decline of nearly 9.9% from May and an increase of 14.7% June on June.
Around 90% of the oil and natural gas output originated from oilfields operated by Petrobras.
Nearly 92.4% of the oil output and 73.5% of the natural gas output in Brazil originated from offshore fields. The Roncador field, in the Campos Basin, had the largest output of oil, averaging at 256,200 bpd. The largest producer of natural gas was the Mexilhão field, in the Santos Basin, which averaged at 6.6 million m³ per day.
The ANP also reported that, in June, 303 concessions, held by 24 companies, accounted for the Brazilian domestic production. Of those, 82 are offshore concessions and 221 are onshore ones.