Brazil Inflation July 2017

Brazil

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.

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2017 at 3.7%, which is down 0.1 percentage points from last month’s forecast. For 2018, the panel expects inflation of 4.2%.


Author: Angela Bouzanis, Senior Economist

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Brazil Inflation July 2017

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


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