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Brazil’S Inflation Dips Into Negative Territory For The First Time Since 2023
(MENAFN- The Rio Times) Brazil's official inflation rate, measured by the Extended National Consumer Price index (IPCA), fell 0.02% in August, marking the first deflation since June 2023.
This represents a significant slowdown from July's 0.38% increase and defied market expectations of a 0.02% rise.
The decline was primarily driven by decreases in housing costs (-0.51%) and food and beverages (-0.44%).
Residential electricity prices dropped 2.77%, while food consumed at home fell 0.73% for the second consecutive month.
Year-to-date inflation now stands at 2.85%, down slightly from 2.87% in July.
The 12-month inflation rate eased to 4.24% in August from 4.50% in July, moving further away from the central bank's 2024 target ceiling of 4.5%.
Food prices saw significant fluctuations. Potatoes (-19.04%), tomatoes (-16.89%), and onions (-16.85%) experienced sharp declines.
Conversely, papaya (17.58%), prata bananas (11.37%), and ground coffee (3.70%) saw price increases.
Transportation costs remained stable overall. While vehicle gas (4.10%), gasoline (0.67%), and diesel (0.37%) prices rose, airfares fell by 4.93%.
This unexpected deflation may influence the central bank's monetary policy decisions in the coming months as it balances economic growth with inflation control.
Brazil's Inflation Dips into Negative Territory for the First Time Since 2023
This represents a significant slowdown from July's 0.38% increase and defied market expectations of a 0.02% rise.
The decline was primarily driven by decreases in housing costs (-0.51%) and food and beverages (-0.44%).
Residential electricity prices dropped 2.77%, while food consumed at home fell 0.73% for the second consecutive month.
Year-to-date inflation now stands at 2.85%, down slightly from 2.87% in July.
The 12-month inflation rate eased to 4.24% in August from 4.50% in July, moving further away from the central bank's 2024 target ceiling of 4.5%.
Food prices saw significant fluctuations. Potatoes (-19.04%), tomatoes (-16.89%), and onions (-16.85%) experienced sharp declines.
Conversely, papaya (17.58%), prata bananas (11.37%), and ground coffee (3.70%) saw price increases.
Transportation costs remained stable overall. While vehicle gas (4.10%), gasoline (0.67%), and diesel (0.37%) prices rose, airfares fell by 4.93%.
This unexpected deflation may influence the central bank's monetary policy decisions in the coming months as it balances economic growth with inflation control.
Brazil's Inflation Dips into Negative Territory for the First Time Since 2023
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