Brazil sees price hikes after two months of deflation

Brazil’s official inflation, as gauged by the National Broad Consumer Price Index (IPCA), stood at 0.26 percent in June, the higher than May this year (-0.38%) and June 2019 (0.01%). The figures were released in Rio de Janeiro today (Jul. 10) by the government’s statistics agency IBGE.

June’s inflation came after two consecutive decline in prices: May (-0.38%) and April (-0.31%). The result in June brings the IPCA to 0.10 percent year-to-date and 2.13 percent in the 12-month period.

Food and drinks

The main drivers behind the inflation in June were food and drinks, which saw a 0.38 percent increase in prices due to products such as pinto beans (4.96%), rice (2.74%), and UHT milk (2.33%).

Transport also made a significant impact on June’s IPCA, with 0.31 percent inflation, chiefly due to gasoline (3.24%) and ethanol (5.74%).