Brazil Inflation Rate Falls More than Expected to 4.19%


The annual inflation rate decreased to 4.19 percent in August 2018 from 4.48 percent in July and compared with market expectations of 4.3 percent. It was the lowest inflation rate since May, mainly due to slowing prices of transport and housing.

Year-on-year, prices rose at a slower pace for: transport (5.98 percent vs 8.94 percent in July); housing (7.28 percent vs 7.41 percent) and clothing and footwear (1.52 percent vs 1.61 percent). In contrast, inflation picked up for: food and beverages (2.15 percent vs 1.40 percent); health and personal care (5.44 percent vs 5.31 percent); education (5.06 percent vs 5.05 percent); houshold goods (1.10 percent vs 0.74 percent) and communications (0.97 percent vs 0.38 percent).

On a monthly basis, consumer prices dropped 0.09 percent, following a 0.33 percent increase in July and against market expectations of a 0.27 percent rise. Cost was mainly pushed down by lower prices of transport (-1.22 percent vs 0.49 percent) and food and beverages (-0.34 percent vs -0.12 percent).

Brazil Inflation Rate Falls More than Expected to 4.19%


IBGE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/6/2018 12:17:02 PM