In July, the index that measures Brazil's official inflation, the IPCA (Extended National Consumer Price Index), had the biggest retraction since 1980: it fell 0,68%. This drop in prices is called deflation. But the phenomenon happened, mainly, because fuel prices fell in the same period (-14,15%), pulling the IPCA down.
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The housing sector was also responsible for the general drop in prices, but food and beverages increased by 1,3%, mainly impacting low-income people. (Folha de S.Paulo(I.e.)
The accumulated value for the year – since July 2021 – was 10,07%, as announced this Tuesday (09) by the Brazilian Institute of Geography and Statistics (IBGE). For 11 consecutive months, the annual price variation index has been on the rise, which has not occurred since 2003 in Brazil.
