Itaú BBA - IPCA shows deflation in August (-0.09%)

Macro Brazil

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IPCA shows deflation in August (-0.09%)

September 6, 2018

Our preliminary estimate for the IPCA in September is a 0.40% increase


For the version with all charts and tables, please open the attached pdf file 
 

The consumer price index IPCA moved -0.09% in August, printing below the lowest of market estimates (-0.06%; median 0.00%; our call -0.03%). Year-to-date, the IPCA went up 2.85% and the year-over-year change decelerated to 4.19% from 4.48% in July. The biggest upward contributions during the month came from housing (0.07 p.p.); healthcare and personal care (0.07 p.p.); and personal expenses (0.04 p.p.). On the other hand, the transportation group provided a significant negative contribution (-0.23 p.p.), reflecting price cuts for fuels and airfares. The food group also provided a negative contribution (-0.08 p.p.). Our preliminary estimate for the IPCA  in September is a 0.40% increase, with the year-over-year rate picking up to 4.4%.


Elson Teles
Economist

 

For the version with all charts and tables, please open the attached pdf file 



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