Inflation down to 0.21% in June

Consumer price index IPCA, which serves to gauge Brazil’s official inflation, registered a rate of 0.21 percent in June this year, lower than May’s 0.46 percent but higher the proportion seen in June last year, a deflation of 0.08 percent. The data were released today (Jul. 10) by statistics bureau IBGE.

The result brings the IPCA’s inflation rate to 2.48 percent year to date and 4.23 percent for the 12-month span.

Inflation in June was mainly influenced by food and beverages, up 0.44% in the month, with an increase in the cost of products such as white potatoes (14.49%), long-life milk (7.43%), ground coffee (3.03%), and rice (2.25%).

Health and personal care rose by 0.54 percent in the month and had the second main impact on official inflation in June. Among the items that influenced the result were perfumes, up 1.69 percent.

On the other hand, transportation averted higher inflation by registering a deflation of 0.19 percent in the month, a result driven by drops in the prices of airline tickets (-9.88%), diesel oil (-0.64%), and vehicle gas (-0.61%).