Brazil Inflation Rate Lowest Since 1999


Consumer prices in Brazil increased by 2.71 percent year-on-year in July 2017, slightly above market expectations of 2.66 percent and following an increase of 3.00 percent in the previous month. It was the lowest inflation rate since February 1999, as food prices fell for the first time since July 2006.

Cost of food and beverages fell 0.66 percent from the previous year, the first drop since July 2006 and following a 1.13 percent gain in June. Additional downward pressure came from furnishings and household equipment (-0.05 percent from -0.72 percent in June).

In addition, prices rose at a slower pace for: Transport (1.80 percent from 1.85 percent in June); health (7.19 percent from 7.44 percent); clothing (2.20 percent from 2.24 percent); and education (7.94 percent from 8.00 percent). Meanwhile, housing inflation accelerated to 4.60 percent from 2.62 percent in June.

On a monthly basis, consumer prices rose 0.24 percent, also above market consensus of 0.19 percent and following a 0.23 percent drop in June. Prices rose for housing (1.64 percent from -0.77 percent in June) and transport (0.34 percent from -0.52 percent), but fell for food and beverages (-0.47 percent from -0.50 percent).

IBGE | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/9/2017 12:27:31 PM