Brazil’s August IPCA-15 Shows Inflation Cooling with Modest Rise
In August, Brazil’s IPCA-15 inflation indicator decelerated, marking a modest 0.19% increase from July, which itself had a 0.30% rise.
This information was released by the Brazilian Institute of Geography and Statistics (IBGE) last Tuesday.
Over the past year, inflation climbed by 4.35%, a slight reduction from the 4.45% recorded in the previous twelve months. For context, the rate in August 2023 was 0.28%.
Analysts from LSEG had projected a 0.20% monthly inflation and an annual rate of 4.38%. Their estimates were narrowly missed.
Eight out of nine product and service groups saw prices increase last month. The Transportation sector reported the most significant jump, a 0.83% increase, adding 0.17 percentage points to the index.
Education followed closely, with a 0.75% increase, contributing 0.05 percentage points.
Meanwhile, the Food and Beverages group bucked the trend, falling by 0.80% and reducing the index by 0.17 percentage points.
Other sectors recorded increases between 0.09% in Communications and 0.71% in Household Items.
Detailed Sector Analysis
Transportation
Transportation was significantly affected by a 3.33% rise in gasoline prices. Other fuel types, including ethanol and diesel, also saw price increases. However, airline fares decreased by 4.63%.
Education
Education costs were driven up mainly by hikes in higher education and primary education fees. Language course fees notably increased as well.
Housing
In the Housing sector, the largest impact came from a 1.93% rise in bottled gas prices. Tariff adjustments in several cities caused water and sewage fees to increase.
Adjustments in piped gas pricing in Rio de Janeiro and changes in consumption slabs in Curitiba also occurred. Residential electricity costs decreased due to the return of the green tariff flag.
Food and Beverages
The Food and Beverages sector noted a more pronounced decline in home food prices compared to July.
Tomatoes, carrots, potatoes, and onions all saw significant price drops. In contrast, ground coffee prices went up.
Costs for dining out increased, driven by sharper rises in snack and meal prices compared to the previous month.
Economic Implications
This cooling of inflation rates hints at easing economic pressures, potentially guiding monetary policy to foster growth while managing inflation spikes.
These sector-specific shifts provide essential insights into Brazil’s economic health, crucial for policymakers and market observers.
Adjustments in utility costs and price movements in the food and transportation sectors highlight the evolving economic landscape in Brazil.
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+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
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60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 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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