Brazil: Inflation stable in July
August 8, 2014
Consumer prices were virtually unchanged in July, rising 0.01% over the previous month. The print was markedly below both the 0.40% increase recorded in June and market expectations of a 0.10% rise. July’s print represented the lowest monthly increase in consumer prices since July 2010. Although only four of the nine categories that comprise the consumer price index registered price drops in July, this was enough to keep the monthly rate virtually at zero. Among the categories that tallied price increases, prices rose the most for personal items and health services. Conversely, prices for foodstuffs and non-alcoholic beverages as well as for communications registered a drop in July.
As a result of the monthly reading, annual headline inflation was stable at June’s 6.5% in July. Inflation is resting on the upper limit of the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around its target of 4.5%.