COVID-19: Brazil’s annual inflation accelerates to 8.6% y/y in mid-July
Brazil’s Extended National Consumer Price Index 15 (IPCA-15) rose by 8.6% y/y in mid-July 2021, supported by higher prices of electricity, as the country faces a drought in reservoir regions of many hydroelectric plants. Consequently, housing prices grew by 10% y/y in mid-July, also affected by higher prices of gas in the period.
The inflation of food and beverages accelerated to 12.8%, from 12.1% in mid-June, reflecting higher prices of milk and chicken. Otherwise, the subindex of health and personal care slowed down, growing by 3.6% y/y in mid-July, compared to 4.3% y/y in mid-June.
Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q2 2021 report.