The National Broad Consumer Price Index (IPCA) registered deflation of 0.32% in August, according to the Brazilian Institute of Geography and Statistics (IBGE). It was the first drop in the indicator in a year and the largest deflation since August 2022. In July, inflation had been 0.07%, and the August result was below the expectation of financial market analysts, who projected a decline of 0.28%.
With the August data, the IPCA accumulates an increase of 3.11% in the year and of 4.22% in the last 12 months. The index remains below the ceiling of 4.5% of the inflation target established for the period.
Of the nine groups of products and services surveyed, four showed price drops: Housing, with a decline of 1.87%; Transportation, of 0.86%; Food and beverages, of 0.34%; and Communication, of 0.09%. The drop in the Housing group was the largest ever recorded for an August month since the implementation of the Real Plan.
The overall result was driven by residential electricity, which became 7.63% cheaper and had a significant impact on reducing the index.
