Brazil’s benchmark price index IPCA slipped 0.36 percent in August, following a 0.68 percent drop in July, when the rate was at its lowest since the beginning of this time series, initiated in 1980. This brings the country’s official inflation up 4.39 percent year to date and up 8.73 percent after 12 months, as per figures disclosed today (Sep 9) by official statistics body IBGE.
Research manager Pedro Kislanov said the slowdown in deflation was chiefly influenced by the electricity fees and fuel prices.
There was a less intense retraction in electric energy (-1.27%) in August, he noted. In July, the decline was 5.78 percent, as a result of lower rates for the ICMS—the tax on the circulation of goods and on services of interstate and intermunicipal transportation and communication. An acceleration, he added, was also observed in some groups, such as health and personal care (1.31%) and clothing (1.69%), along with a less sharp retreat in transportation in August.
Kislanov pointed out gasoline prices fell 15.48 percent in July, against a 11.64 percent plunge in August. As a result, transportation stood at -3.37 percent and fuel prices were down 10.82 percent. Month to date, vehicular gas fell 2.12 percent, diesel oil went down 3.76 percent, and ethanol was 8.67 percent cheaper.
