While others struggle with inflation, Brazil registers the biggest price drop in 42 years
Brazil registered deflation -a drop in the price index- of 0.68% in July. This was the first drop in the IPCA (National Wide Consumer Price Index) since May 2020 (-0.38%). It was also the biggest drop recorded in the historical series, which started in January 1980 – 42 years.
The IBGE (Brazilian Institute of Geography and Statistics) released the result this Tuesday (9). The previous record was set in August 1998, when there was a deflation of 0.51%.
The drop in the IPCA (National Wide Consumer Price Index) was slightly higher than the financial market projections obtained by Poder360. Analysts estimated deflation of 0.66% or more in June.
In the year, the IPCA accumulates a high of 4.77%. The index slowed down in July in relation to June in the accumulated over 12 months. The rate went from 11.89% to 10.07%. Still, it has been above two digits for 11 months. This is the lowest percentage since August 2021, when the 12-month high was 9.68%.
July’s deflation was driven mainly by the transportation group, which dropped 4.51% in prices. Fuel prices dropped 14.15%. Gasoline dropped 15.48%, and ethanol, 11.38%. Only diesel oil went up: +4.59%.
On June 23, President Jair Bolsonaro (PL) sanctioned the bill that limits the ICMS (Value-Added Tax on Sales and Services) on diesel, gasoline, electric energy, communications, and public transportation.
Of the 9 groups surveyed, there was deflation in two: prices in the housing group dropped 1.05%. Electricity slid 5.78% in the month. The food and beverage group rose 1.3% in July.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.51%
171,906.72
+0.51%
66,105.23
+0.57%
11,537.98
+1.76%
2,995,129
+2.81%
2,510.72
+2.09%
60,222.25
-0.17%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 171,906.72 | +0.51% | +21.85% | 171,031.73 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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