The Expanded National Consumer Price Index (IPCA) of Brazil stood in August at 4.22% year-on-year, below the 4.44% recorded in the same month of the previous year, according to data released this Friday by the Brazilian Institute of Geography and Statistics (IBGE).
In monthly terms, prices in the eighth month of the year showed a decrease of -0.32% compared to July, when there had been an increase of 0.07%. Thus, the accumulated inflation between January and August reaches 3.11%.
By components, the personal expenses group led the monthly increases with a rise of 1.30%, ahead of household items, which advanced by 0.64%, and the education section, with 0.47%. On the opposite side, decreases were recorded in housing costs (-1.87%), in transportation (-0.86%) and in food and beverages (-0.34%).
In this context, the Central Bank of Brazil (BCB) agreed in August to cut interest rates by 25 basis points, bringing them to 14%. The agency justified that this decision was "consistent" with its roadmap to stabilize prices, "temper" the "economic fluctuations" and promote full employment.