The slowdown put inflation back within the central bank's target of 4.5 percent plus or minus two percentage points.
On year, food prices grew 11.4 percent, with the highest increases reported for flour (120%), potatoes (104%), onions (43%) and beans (23%). Prices of services grew 8.5 percent.
From to June to July, IPCA index increased 0.03 percent, down from 0.26 percent reported in June.
Month on month, the highest price increases were reported for personal expenses (1.1%) and housing (0.57%). In contrast, cost of transportation (-0.66%), food and beverages (-0.33%) and apparel (-0.39%) declined.