Brazil: Inflation eases to over-one-year low in June
July 8, 2016
Consumer prices in June increased 0.35% over the previous month. The print was below the 0.78% increase recorded in May and was a greater slowdown than market analysts’ expectations. The slowdown was largely broad-based across the index, with less pronounced increases in prices recorded across seven of the nine components of the index.
Inflation in June eased to 8.8% from May’s 9.3%. The result marked the lowest inflation level since May 2015. The easing in price pressures comes amid a backdrop of recession. In addition, the effect of a number of price adjustments is beginning to fade. Despite the fall, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.