Brazil’s inflation rate over a 12-month period has decelerated due to a recent decline in the price of fuels, including gasoline. According to the country’s Institute of Geography and Statistics (IBGE), consumer prices rose only 0.04% from May 16 to June 15 and increased 3.40% in comparison to the previous year. The data marks a decline in comparison to figures released in May, which saw prices rising by 0.51% from mid-April to mid-May, while the rate of inflation was at 4.07%.
Fuel and Transportation Costs in June
Transportation prices dropped by 0.55% from mid-May to mid-June, directly influenced by a corresponding decrease of 3.75% in fuel prices during that time, including a 3.40% decrease in gasoline costs, an 8.29% drop in diesel fuel prices, and a 4.89% fall of the price of alternative ethanol fuel.
Housing Costs on the Rise
As for housing costs, prices rose by 0.96% in the stated period, with water and sewage treatment expenditures rising by 3.64% and electricity rates after by 1.45%. Housing had the largest impact as a single category on the price index, as reported by IBGE.
Overall, the current decline of certain prices like gasoline could help slow yearly inflation rates and provide financial relief to Brazilians.