Brazil's official inflation slows down in June

Brazil's official inflation, measured by the Broad National Consumer Price Index (IPCA), fell 0.43 percentage points in June compared with May, decreasing from 0.78% to 0.35%.

Even with the slowdown, the IPCA ended the first half of the year with an accumulated increase of 4.42%, a result below the 6.17% recorded in last year's first six months. The variation in June (0.35%) is the lowest since August last year (0.22%).

The figures were disclosed today (Jul. 8) by the Brazilian Institute of Geography and Statistics (IBGE).

With the result from June, the IPCA—used by the Central Bank as a parameter for the so-called Plan of Targets—ended the last twelve months (annual rate) reporting an increase of 8.84%, a result 0.48 percentage points below the 9.32% reported in the previous twelve months. In June 2015, the IPCA recorded a variation of 0.79%.

Seven out of nine groups of products and services surveyed reported lower prices in June compared with May.

Translated by Amarílis Anchieta