Brazil: deflation for the 3rd consecutive month
Brazil registered deflation – a price drop – for the 3rd consecutive month.
The IPCA (National Wide Consumer Price Index) fell 0.29% in September, the largest drop for the month in the historical series, which began in 1980.
The IBGE (Brazilian Institute of Geography and Statistics) released the result on Tuesday, October 11.
September’s deflation was a little lower than expected by the financial market, which estimated a drop of 0.32%.
The IPCA had already fallen 0.68% in July and 0.36% in August.
The president of the Central Bank (BC), Roberto Campos Neto, corrected the projection.
He said in August that there would be three consecutive months of falling prices.
Brazil’s official inflation accumulates a high of 4.09% in the year.
In 12 months, it went from 8.73% in August to 7.17% in September.
Even so, the percentage is above this year’s target.
The percentage forecast for inflation should close 2022 outside the inflation target established by the CMN (National Monetary Council) of 3% to 5%.
Four of nine groups surveyed by IBGE registered deflation in September.
The most significant impact was transport prices, which fell 1.98% in the month.
It was the third consecutive month of decline in this item.
In September, fuel prices slid 8.5%, boosted by gasoline (-8.33%), ethanol (-12.42%), diesel oil (-4.57%), and vehicular gas (-0.23%).
The consecutive decreases are due to the measure to limit the ICMS (Brazilian VAT) on fuels, energy, and telecommunications.
The housing group rose 0.6% in September. Residential electricity rose 0.78% in the month.
Communication deflated 2.08%, boosted by internet access (-10.55%) and telephony, internet, and cable TV (-2.7%).
The food and beverage group slid 0.51% in September after registering a 0.24% hike in August.
Foodstuffs at home fell 0.86% in the month, with contributions from long-life milk (-13.71%) and soybean oil (-6.27%).
With information from Poder360
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+2.80%
177,575
+2.80%
66,505
+0.60%
11,032
+0.06%
3,278,430
+2.37%
2,307.84
+0.66%
56,194.27
+1.27%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 177,575 | +2.80% | +29.86% | 172,742 | 177,837 | 172,761 | — |
| USD/BRL | 5.11 | -0.16% | -8.50% | 5.12 | 5.13 | 5.10 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| PETR4 | 39.57 | +0.92% | +22.83% | 39.21 | 39.97 | 39.34 | 23,506,900 |
| VALE3 | 74.26 | +1.52% | +34.33% | 73.15 | 74.66 | 73.12 | 18,431,700 |
| ITUB4 | 44.20 | +3.78% | +29.18% | 42.59 | 44.34 | 43.23 | 24,545,700 |
| BBDC4 | 18.81 | +4.50% | +16.54% | 18.00 | 18.87 | 18.32 | 40,754,300 |
| BBAS3 | 20.55 | +2.75% | -3.11% | 20.00 | 20.67 | 20.25 | 21,354,000 |
| B3SA3 | 15.42 | +4.26% | +9.30% | 14.79 | 15.53 | 15.19 | 34,115,500 |
| ABEV3 | 15.83 | +0.70% | +19.50% | 15.72 | 15.99 | 15.72 | 29,312,900 |
| WEGE3 | 46.55 | +1.77% | +16.64% | 45.74 | 46.80 | 46.11 | 5,663,500 |
| PRIO3 | 55.39 | -0.40% | +32.51% | 55.61 | 56.29 | 55.04 | 5,928,900 |
| SUZB3 | 41.44 | +1.00% | -16.89% | 41.03 | 41.87 | 41.20 | 6,823,600 |
| RENT3 | 40.92 | +3.86% | +6.90% | 39.40 | 41.32 | 40.31 | 6,836,400 |
| AZZA3 | 19.08 | +3.36% | -47.68% | 18.46 | 19.30 | 18.81 | 1,571,300 |
| CSNA3 | 5.19 | +8.13% | -37.82% | 4.80 | 5.20 | 4.95 | 12,872,000 |
| GGBR4 | 22.95 | +2.09% | +36.20% | 22.48 | 23.10 | 22.58 | 8,919,000 |
| ENEV3 | 27.45 | +4.77% | +106.86% | 26.20 | 27.46 | 26.61 | 13,300,100 |
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