*Brazil’s national statistics institute (Ibge) has released the official inflation figures for August, showing monthly deflation of 0.11% and putting the annual inflation rate at 5.13%, which is down from 5.23%
in July. Of the nine categories of products and services measured by the Ibge, five posted monthly deflation. The greatest prices decreases in August were registered in housing (-0.90%), food and drinks (-0.46%), and transport (-0.27%). According to the Ibge, deflation in housing was mainly driven by lower household energy bills, which decreased by 4.21% in monthly terms. The Ibge has also highlighted that August marks the third consecutive month for the food and drinks category to register monthly deflation. August’s deflation of 0.46% marked a greater decrease than the monthly deflation rates of 0.18% in June and 0.27% in July. Meanwhile, monthly deflation in August for the transport category was mainly attributed to lower prices for air travel (-2.44%) and fuels (-0.89%).
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