Brazil: Inflation falls to the lowest level since 1999
August 9, 2017
Consumer prices in July rose 0.24% over the previous month, which contrasted June’s 0.23% decrease. The rise came on the back of rising prices for housing and transport, which more than offset a fall in prices for food and beverages.
Inflation continued to drop in July, falling to 2.7%—the lowest level since February 1999 (June: 3.0%). The result was below the Central Bank’s target range of 4.5% plus/minus 1.5 percentage points and is good news for the battered economy. The fall should give the Central Bank space to continue with its easing cycle to support a recovery and give a boost to household spending.