Brazil recorded deflation, or a price decline, for the second consecutive month. The IPCA (National Wide Consumer Price Index) fell 0.36% in August.
The IBGE (Brazilian Institute of Geography and Statistics) released the result on Friday (Sep.9).
The financial market had expected a slightly larger decline of 0.40% in August.
The IPCA measures price fluctuations in the economy. Inflation means an increase in prices, while deflation means a decrease in costs.
Brazil recorded the second consecutive decline in the index. Central Bank President Roberto Campos Neto said on Aug. 23 that there could be as many as three consecutive months of declines.
The IPCA peaked at 4.39% in 2022. Over the past 12 months, the rate fell from 10.07% in July to 8.73% in August, the lowest level since June 2021.
The transportation group again influenced August’s price decline, which fell 3.37% for the month.
Fuel costs decreased by 10.82%, with gas for vehicles (-2.12%), diesel oil (-3.76%), ethanol (-8.67%), and gasoline (-11.64%) accounting for the largest share.
Air fares also decreased by 12.07% in August.