Brazil Inflation July 2018


Brazil: Inflation broadly unchanged in July

August 8, 2018

Consumer prices increased 0.33% in July over the previous month, significantly below June’s 1.26% rise. June’s result had marked the sharpest increase since January 2016 due to goods shortages caused by the truckers’ strike. The reading, however, came in above market expectations of a 0.27% increase.

Lower price pressures were seen in all subcategories of the index as the effects of the strike abate. However, elevated prices for electricity prevented a sharper slowdown. Low rainfall has hurt hydropower generation in recent weeks, driving electricity prices up.

Inflation inched up from 4.4% in June to 4.5% in July, the highest reading since March 2017. Inflation is at the Central Bank’s target of 4.5% plus or minus 1.5 percentage points. Annual average inflation rose from 2.9% in June to 3.0% in July.

Brazil Inflation Forecast

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2018 at 4.0%, which is unchanged from last month’s forecast. For 2019, the panel expects inflation of 4.3%.

Author: Angela Bouzanis, Senior Economist

Sample Report

Looking for forecasts related to Inflation in Brazil? Download a sample report now.


Brazil Inflation Chart

Brazil Inflation July 2018

Note: Annual and monthly var. of IPCA consumer price index in %.
Source: Brazilian Institute of Geography and Statistics (IBGE).

Brazil Economic News

  • Brazil: Retail sales record worst result in nearly two years in December

    February 13, 2019

    Retail sales (excluding cars and construction) fell 2.2% from the previous month in seasonally-adjusted terms in December, notably contrasting November’s revised 3.1% expansion (previously reported: +2.9% month-on-month) and the largest drop since January 2016. Declines were recorded in five of the eight categories of the index, with notably contractions in sales of other articles for personal and domestic use, and furniture and household appliances. On an annual basis, retail sales rose 0.6% in December, notably below November’s 4.5% expansion.

    Read more

  • Brazil: Inflation inches up in January

    February 8, 2019

    Consumer prices rose 0.32% in January over the previous month, accelerating from December’s 0.15% increase.

    Read more

  • Brazil: Central Bank holds SELIC rate at record-low

    February 6, 2019

    At its 5–6 February meeting, the Central Bank of Brazil’s Monetary Policy Committee (Comité de Política Monetária, COPOM) unanimously decided to keep the benchmark SELIC interest rate at its record low of 6.50%, where it has rested since the Central Bank paused its long and aggressive easing cycle in March.

    Read more

  • Brazil: Manufacturing PMI edges up in January

    February 4, 2019

    Conditions in Brazil’s manufacturing sector improved at the start of 2019.

    Read more

  • Brazil: Industrial production rebounds in December

    February 1, 2019

    Industrial production rebounded in December, growing 0.2% month-on-month in seasonally-adjusted terms.

    Read more

More news

Search form