*Brazil’s national statistics institute (Ibge) has released the latest figures for its consumer price index (Ipca), showing monthly inflation of 0.48% in September and an annual rate of 5.17%. This contrasts with monthly deflation of 0.11%
in August, when annual inflation stood at 5.13%. Of the nine categories of products and services measured by the Ibge, six saw a monthly rise in prices in September. The greatest monthly inflation rates were registered in the categories of personal spending (+0.51%), clothing (+0.63%), and housing (+2.97%). The rise in the housing category was mainly driven by household electricity bills, which rose by 10.31% in monthly terms. In a press release, the Ibge highlighted the end of the so-called ‘Bônus de Itaipu’, which was applied in August but not in September. The Bônus de Itaipu is a temporary discount in electricity bills due to surplus revenue from the binational Brazilian-Paraguayan hydroelectric dam, which brought down prices in August, contributing to the overall monthly deflation.
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