Brazil July IGP-M Price Index Slows for Second Month
Brazil’s monthly inflation as measured by the IGP-M price index rose 0.15 percent in July, the Getulio Vargas Foundation said in a statement on its website.
Economists had been forecasting prices to jump by 0.05 percent, according to the median estimate in a Bloomberg survey of 24 analysts. It was the second-straight month that Brazil’s broadest price index slowed, after falling to 0.85 percent in June from 1.19 percent in May.
Wholesale prices, which have a 60 percent weighting in the index, rose 0.2 percent compared with a 1.09 percent increase in June. Consumer prices fell 0.17 percent, the second straight month of deflation, led by a 1.05 percent drop in food costs.
Inflation jumped 5.79 percent from a year ago, the Rio de Janeiro-based university said.
The IGP-M index is widely used in Brazil to regulate price adjustments in rental contacts and utility services.
Policy makers increased the overnight rate by 0.50 percentage point to 10.75 percent last week, surprising 48 of 51 analysts surveyed by Bloomberg who expected them to lift the Selic by 0.75 percentage point as in its previous two meetings.
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