Brazil Inflation July 2019


Brazil: Inflation drops to lowest rate since May 2018 in July

August 8, 2019

Consumer prices rose 0.19% in July over the previous month, which was above June’s 0.01% increase but below market expectations. The result also marked the smallest increase for July since July 2014. The rise was chiefly driven by higher prices for housing, mainly due to higher electricity bills amid the yellow flag. Outside of housing, price pressures were largely benign.

Inflation fell to 3.2% in July from June’s 3.4%, the lowest reading since May 2018. Accordingly, inflation came in below the Central Bank’s target of 4.25% for the end of 2019.

Annual average inflation, however, was broadly unchanged at 4.1% in July (June: 4.2%).

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2019 at 3.9%, which is unchanged from last month’s forecast. For 2020, the panel expects inflation of 4.0%.

Author: Angela Bouzanis, Lead Economist

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Brazil Inflation Chart

Brazil Inflation July 2019

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

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