Economy
Driven by lower food and beverage prices, accumulated inflation reaches the lowest rate since the creation of the Real Plan in 1994
BrazilGovNewsIn the wake of economic stabilisation, Brazil’s Broad Consumer Price Index (IPCA, the country’s official inflation rate) was up 0.19% in August. The number adds up to a total 2.46% inflation in the last twelve months, the lowest rate in this basis of comparison since February 1999.
This is also the lowest rate for a month of August since 2010. Inflation is now at 1.62% in year-to-date terms, the lowest for the January-August period since the implementation of the Real Economic Plan in 1994. The data was released on Wednesday (6) by the Brazilian Institute of Geography and Statistics (IBGE).
According to the agency, the month’s results were driven by lower food and beverage prices, which fell for the fourth consecutive time by 1.07%, and telecommunication services, which became 0.56% cheaper in August.
Within the food group (which corresponds to an average 25% of Brazilian household expenditures), the decrease was chiefly led by lower prices for carioca beans (-14.86%), tomato (-13.85%), crystal sugar (-5.90 %), UHT milk (-4.26%), fruits (-2.57%) and meats (-1.75%).
In the telecommunication services group, the main drop was in cell phone bills, which fell an average 1.57%.
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