Economy

Brazil registered the lowest inflation rate of 2019 in June

Brazilian inflation rate decrease in June
  • The IPCA reached 0,01% in June, the lowest rate in 2019, and is sustaining an annual rate below the government’s goals
  • Lower prices in food products and gas

Good news for Brazilians, inflation in the country, regulated by the National Index of Pricing to the General Consumer (IPCA), reached its lowest rate of the year in June, at 0,01%, according to the Brazilian Institute of Geography and Statistics (IBGE). It was the lowest rate registered in June since 2017, when the inflation was at -0,23%.  

In the first semester of 2019, the inflation registered in the country reached 2,23%, achieving a better result from what was projected as the annual rate by the government (4,25%). 

The sectors which had the biggest influence were the food and transportation industries. Together, these two segments set up a deflection of 0,25% and 0,31% in the last month, and they are so important that they directly impacted the general outcome because they represent 43% of the Brazilians expenses. 

As a result, buying fruits, food, and fuel is cheaper for Brazilians and, at least for now, reducing these fundamental costs can make a huge difference in their purchasing power by the end of the month.