Brazil’s inflation accelerates to 8.99% y/y in July

Brazil’s inflation accelerated further in July, as the Broad Consumer Price Index (IPCA) soared by 8.99% y/y, after rising by 8.35% y/y in June.

The indicator remains well above the 5.25% upper limit of the country’s inflation targeting range for 2021. Notably, electricity prices jumped by 20% y/y in July, influenced by a drought in the reservoir regions of hydroelectric plants. Food price growth accelerated to 16% y/y in July, from 15.3% y/y in June, reflecting higher prices of tomatoes and milk.

Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q2 2021 report.