The Broad Consumer Price Index (IPCA), Brazil's official inflation index, dropped 0.32% in August, according to IBGE. It was the biggest deflation recorded since 2022, with the main negative impacts coming from electricity bills and food.
Among the items that contributed the most to the index's decline, residential electricity recorded the biggest drop, with a fall of 7.63% and an impact of -0.33 percentage point. Airfare plummeted 13.17%, while potatoes fell 19.89% and tomatoes dropped 10.94%. Gasoline also contributed to deflation with a decline of 0.59%.
On the other end, cigarettes were the item with the biggest price increase, soaring 19.59% and impacting 0.11 percentage point on the index. Car repairs rose 1.35% and meat recorded an increase of 0.61%, completing the list of main items that pushed the IPCA upward.
