Brazil: Inflation drops to over one-year low in June
Consumer prices rose 0.01% in June over the previous month, a softer gain than May’s 0.13% increase and the lowest result seen so far in 2019. Falling prices for food and beverages along with transportation chiefly drove the lower print.
Inflation fell to 3.4% in June from May’s 4.7%, the largest drop seen from month-to-month in over a decade and marking the lowest reading since May 2018. The result is partly due to a favorable base effect as prices surged in June 2018 due to the truckers’ strike. Accordingly, inflation came in below the Central Bank’s target of 4.25% for the end of 2019.
Annual average inflation, however, was broadly unchanged at 4.2% in June (May: 4.3%).