Brazil Inflation Rate Falls Further To 3%



Consumer prices in Brazil increased 3 percent year-on-year in June of 2017, below 3.6 percent in May and in line with market expectations of 3.06 percent. It is the lowest inflation rate since April of 2007, due to a slowdown in cost of food and a fall in electricity prices.

Prices rose at a slower pace for: food and beverages (1.13 percent from 2.36 percent in May); housing and utilities (2.62 percent from 4.07 percent); health (7.44 percent from 7.84 percent) and clothing (2.24 percent from 2.35 percent). In addition, prices fell for furnishings; household equipment (-0.72 percent from -0.4 percent). On the other hand, inflation was steady for transport (1.85 percent from 1.84 percent) and education (8 percent from 8.04 percent) and increased for personal expenses (7.44 percent from 5.32 percent).

On a monthly basis, consumer prices fell 0.23 percent, the first monthly decline since November of 1998. Prices went down 0.77 percent for housing, due to a 5.52 percent drop in electricity cost amid adjustments in energy fees. Transport prices dropped 0.52 percent, due to a 2.65 percent fall in gas prices. Additional downward pressure came from cost of food and beverages (-0.5 percent).

Brazil Inflation Rate Falls Further To 3%


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
7/7/2017 12:57:24 PM