Brazil's Broad Consumer Price Index (IPCA) ended July at 0.01%, the Brazilian Geography and Statistics Institute (IBGE) reported. This figure reflects a decrease compared to June (0.4%) with transport and personal expenses items, contributing for the reduction.
With the latest inflation reading for July (0.01%), the twelve months rates has slid to 6.5%, at the government's inflation target ceiling. Target inflation for 2014 is 4.5% with a plus tolerance of two percentage points.
In June, inflation had exceeded the ceiling for the annualized rate, reaching 6.52% for the past 12 months.
In the first seven months of 2014, IPCA reached 3.76%, up from 3.18% in the same period of 2013.
The numbers suggested the central bank's yearlong series of increases in interest rates, which ended in April at 11% might have started to curb rising prices.
High prices have also dented business and consumer confidence, contributing to a sharp economic slowdown that some economists say may lead to a recession this year.
Lower airfares, food and fuel prices contributed the most to tamping down July's inflation, according to IBGE.
Airfares plunged 27% after the soccer World Cup, while food prices fell 0.15%, the fourth straight month of decline. Gasoline prices declined 0.80%.