Brazil June Inflation Rate at Over 1-Year Low


The annual inflation rate in Brazil decreased to 3.37 percent in June 2019 from 4.66 percent in the previous month but slightly above market consensus of 3.33 percent. It was the lowest inflation rate since May last year, amid a slowdown in cost of food and non-alcoholic beverages, housing and transport.

Year-on-year, prices slowed for food and non-alcoholic beverages (3.99 percent from 6.36 percent in May); transport (2.39 percent from 4.33 percent), in particular fuels (-1.85 percent from 5.07 percent); housing (3.84 percent from 6.34 percent); personal expenses (3.43 percent from 3.61 percent); and household goods (3.47 percent from 3.79 percent). Also, cost of communication dropped further (-0.21 percent from -0.19 percent). Meanwhile, prices advanced at a faster pace for health (4.76 percent from 4.48 percent); and education (4.93 percent from 4.80 percent). Also, cost of clothing and footwear rebounded (0.39 percent from -0.08 percent). 

On a monthly basis, consumer prices increased 0.01 percent, easing from a 0.13 percent gain in the prior month but higher than market expectations of a 0.03 percent decline. Cost of transport decreased (-0.31 percent from 0.07 percent in May), namely fuels (-2.41 percent). In addition, prices increased less for housing (0.07 percent from 0.98 percent); personal expenses (0.15 percent from 0.16 percent); and clothing and footwear (0.30 percent compared to 0.34 percent). On the other hand, cost of food and non-alcoholic beverages declined at a slower pace (-0.25 percent from -0.56 percent), of which tomato (5.25 percent from -15.08 percent), beans (-2.87 percent from -13.04 percent) and fruits (-0.71 percent from -2.87 percent).

Brazil June Inflation Rate at Over 1-Year Low


IBGE | Stefanie Moya | stefanie.moya@tradingeconomics.com
7/10/2019 12:20:22 PM