Brazil has historic drop in inflation

Inflation in Brazil dropped by 0.36% in August, after reaching -0.68% in July, the lowest since January 1980. As a result, there is an accumulated rate of 4.39% this year according to the data released last Friday by the Brazilian Institute of Geography and Statistics (IBGE).

In July, the price of gasoline decreased by 15.48%, and 11.64% in August. As a result, the transport group price index registered – 3.37%, with a 10.82% drop in fuel prices overall (vehicle gas fell by 2.12%, diesel oil fell by 3.76% and ethanol – 8.67%).

Airfares were down by 12.07% in August due to the end of the holiday season, as well as a reduction in aviation kerosene price. The communication group index had a drop of 1.10%, with a – 6.71% in home phone plans and -2.67% in mobile phone services.