Brazil’s official inflation at negative 0.08%
From May to June, Brazil saw a decrease in its broad consumer price index, the IPCA, which was reported at -0.08 percent—the year’s first negative result for the inflation, and the lowest for June since 2017’s -0.23 percent.
The result was released Tuesday (Jul. 11) by Rio-based statistics bureau IBGE and comes as the fourth month in a row with inflation on the wane.
In May, the IPCA was 0.23 percent. Year to date, the index stands at 2.87 percent, compared to 3.16 percent over 12 months—therefore below the 3.94 percent observed in the 12 months prior.
Top drivers
Chief among the catogories that helped put inflation in the negative from May were food and beverages (-0.66%) and transportation (-0.41%), which contributed -0.14 and -0.08 percentage points to the overall index, respectively.
In transportation, the decline was driven by falling prices of new cars (-2.76%) and used cars (-0.93%).
“New cars were the sub-item with the greatest individual impact in the month, -0.09 percentage points. This reduction is linked to the discount program for the purchase of new vehicles, launched by the government on June 6. This may also be related to the decline in the prices of used cars,” IBGE reported.
