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%).