The fall in prices in that month mainly affected food, which fell by 0.44 percent, and the household expenses, which fell by 0.51 percent.

In addition, the drop in the prices of electricity during the eighth month, a 2.77 percent, led the country to deflation

“The main factor that contributed to the fall in prices was a greater supply of these products in the market, due to the milder climate in the middle of the year, which favors the production of these foods, prompting a faster and more intense pace in harvesting,” said the head of the IBGE price area, André Almeida.

According to the entity, it was the first time that the indicator showed a decline since June 2023 (-0.08 percent).

The IPCA recorded inflation rates of 0.38 percent in July of this year and 0.23 percent in August of last year.

This figure translates into a 2.85 percent year-on-year accumulate, at a 4.24 percent rate, below the ceiling set as a target by the National Monetary Council, which is 4.5 percent.

In 2023, Brazil recorded inflation of 4.62 percent, the lowest since 2020, and for this year, the Central Bank aims for it to be three percent.

Ied/npg/otf