Brazil inflation down by more than expected in month to mid-July
2023.07.25 08:56
© Reuters. FILE PHOTO: Consumers shop at a weekly street market in Rio de Janeiro, Brazil, September 2, 2021. REUTERS/Ricardo Moraes/File Photo
SAO PAULO (Reuters) – Consumer prices in Brazil fell by more than expected in the month to mid-July, data from statistics agency IBGE showed on Tuesday, as markets brace for an interest rate cut when the central bank monetary policy committee meets next week.
In Latin America’s largest economy, the IPCA-15 consumer price index fell 0.07% in the period, down from 0.04% in the previous month and below the 0.01% drop expected by economists polled by Reuters.
That took 12-month inflation in the country to 3.19%, while economists had projected it to come in at 3.26%.
The annual figure remains below the central bank’s inflation target of 3.25% for this year, although an uptick is expected from this month because of unfavorable base effects.
IBGE said the deflation in the month to mid-July was mainly driven by lower housing and food and beverage costs, whose declines were partially offset by an increase in transportation prices.
