Brazil’s August inflation comes in -0.32%, lowest in four years
Declines in electricity bills, food prices, and transportation costs caused August’s official inflation rate to close out the month at -0.32% – the lowest rate since August 2022, when the index reached -0.36%. In July, Brazil’s consumer prince index IPCA, which is used to gauge the country’s official inflation, stood at 0.07 percent. In August 2025, it was -0.11 percent. The data were released…
Brazil's August inflation rate dropped to -0.32%, marking the lowest level since August 2022, according to statistics from the Brazilian Institute of Geography and Statistics (IBGE). This decline was primarily driven by a combination of lower electricity bills, food prices, and transportation costs. The consumer price index (IPCA) for August stood at -0.11%, down from 0.07% in July. The cumulative 12-month total for August reached 4.22%, the lowest figure since March 2026.
Notably, the housing sector experienced its deepest deflation since the Real Plan began in 1994, largely due to the Itaipu Bonus, which provided a discount on monthly electricity bills. This discount decreased by an average of 7.63%, contributing significantly to the overall decline in the index. Food prices also continued to fall, marking the third consecutive month of reductions, with the group accounting for 21.5% of Brazilians' monthly consumption basket.
Written by urgent.news from Agencia Brasil's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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