Brazilian inflation in August drops slightly but remains above target

Friday, September 19th 2025 - 03:49 UTC

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Within the IPCA basket, notable declines came from gasoline (-0.94%) and electricity (-4.21%).

Brazil’s official consumer inflation index (IPCA) fell 0.11% in August, the Brazilian Institute of Geography and Statistics (IBGE) reported last week. This was the first negative reading since August 2024 and the sharpest drop since September 2022, when inflation fell 0.29%.

With August’s result, inflation reached 5.13% over the past 12 months, compared with 5.23% in July. In eight months consumer prices have risen 3.15%.

The 12-month result remains above the Central Bank’s inflation target of 3% for 2025 and outside the tolerance band of plus or minus 1.5 percentage points.

Among the nine spending categories tracked by the IPCA, food and beverages deepened their decline from July to August (from -0.27% to -0.46%), while housing costs reversed direction (from +0.91% to -0.90%). Household goods also moved into negative territory (from +0.09% to -0.09%), as did transportation (from +0.35% to -0.27%). Personal expenses slowed their pace of increase (from +0.76% to +0.40%).

Clothing entered into positive territory (from -0.54% to +0.72%), while stronger increases were recorded in health and personal care (from +0.45% to +0.54%) and education (from +0.02% to +0.75%). Communication remained unchanged (-0.09%).

Within the IPCA basket, notable declines came from gasoline (-0.94%) and electricity (-4.21%). Electricity had the single largest downward impact on the August index, reducing the overall figure by 0.17 percentage point.

IBGE calculates official inflation based on the consumption basket of households earning between one and 40 minimum wages, covering 10 metropolitan regions as well as Goiânia, Campo Grande, Rio Branco, São Luís, Aracaju, and Brasília.

Categories: Economy, Brazil.

Tags: brazil inflation, Brazilian Institute of Geography and Statistics (IBGE), IPCA consumer price index.

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no time for you
Un-freaking-believable whoever are your sources: diesel prices went from ard R$ 3.20 in 2021, to current R$ 6.29 (if one is luck to find, and this also after the increased to 15% of “bio-fuel” misture, enough to damage diesel engines quite fast)...- this governement is destroying our country as fast!
Sep 19th, 2025 - 12:54 pm +1
FortHay
At current exchange rates, this amounts to US$ 9.64/gallon. Fuel prices have always been very high in Brazil, despite the country being a net exporter of hydrocarbons. Coupled with an underdeveloped transport infrastructure that lacks long distance rail transport, these fuel prices are a serious threat to economic sustainability. On the other hand, Br$5.8/US$ provides an incentive to undertake purchases and construction in country that build real estate.
Sep 19th, 2025 - 05:19 pm +1
Brasileiro
ntfy

I also think my country is rapidly destroying your government. Look at the soybean and corn farmers in the Midwest; they're bankrupt. What a shame! It makes you want to cry, doesn't it?

1 USD = 5,31 BRL

https://www.youtube.com/watch?v=OG-MpxmoUVo

kkkkk
Sep 19th, 2025 - 07:13 pm -1

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