Brazil Inflation Rate Edges Down to 8.7% in July

Consumer prices in Brazil increased by 8.74 percent year-on-year in July 2016, easing from a 8.84 percent growth in June but above market consensus of 8.66 percent. It was the lowest reading since May last year, as housing prices and cost of furnishings and household equipment rose at a slower. Still, inflation remained well above the central bank's official target of 4.5 percent.

Cost of housing increased by 5.46 percent in July after growing by 7.37 percent in the previous month; and prices of furnishings and household equipment went up 3.20 percent following a 6.03 percent gain in June. Additional upward pressure came from: Food and non-alcoholic beverages (+13.58 percent from +12.83 percent in June); transports (+6.61 percent from +6.34 percent); health (+11.53 percent from +11.79 percent); education (+9.19 percent from +9.15 percent); and recreation and leisure activities (+8.15 percent from +8.04 percent).

The highest inflation rates were recorded for Fortaleza (+10.78 percent), Belém (+10.04 percent) and Salvador (+9.45 percent), while the lowest rates were recorded for Brasília (+7.71 percent), Curitiba (+7.83 percent) and Vitória (+7.92 percent).

On a monthly basis, consumer prices rose 0.52 percent compared to a 0.35 percent growth in the previous month, as prices of food (+1.32 percent from +0.71 percent in June) and transportation (+0.40 percent from -0.53 percent) rose firmly while cost of housing fell (-0.29 percent from +0.63 percent).

Brazil Inflation Rate Edges Down to 8.7% in July

IBGE | Joana Ferreira |
8/10/2016 1:19:47 PM