June inflation forecast declines

21 de junho de 2016

Rio de Janeiro – The inflation rate as measured by the Extended National Consumer Price Index-15 (IPCA-15) registered a slowdown from May to June at 0.4%, less than half of May’s rate (0.86%). It was also the lowest IPCA-15 for a month of June since 2013, when the index registered 0.38%.

The IPCA-15 data – a preview of the official inflation rate – were released this Tuesday (21) by the Brazilian Institute of Geography and Statistics (IBGE). With the index slowing down in June, the Special Extended National Consumer Price Index (IPCA-E) – which is the IPCA-15 by quarter (in this case, April, May and June) – was 1.78%, almost one percentage point below the 2.68% rate of the same period in 2015.

The decline of the IPCA-15 in June reflects a drop in prices in the majority of products and services groups, notably healthcare and personal hygiene (1.03%), foodstuff and beverages (0.35%) and Transportation, with the latter registering a deflation (negative inflation) of 0.69%.

*Translated by Sérgio Kakitani