Inflation in Brazil accelerates in June

The Extended National Consumer Price Index (IPCA) inched up by 0.26% m/m in June for Brazil, after decreasing in April and May. The June figure was influenced by transportation, as fuel prices climbed by 3.37% m/m, following the increase in oil prices on the international markets.  

On the other hand, airline tickets fell by 26% m/m, amid subdued travelling worldwide. The prices of food and beverages, which has the highest weight in the index, increased by 0.38% m/m. On a yearly basis, inflation accelerated to 2.13% y/y in June from 1.88% y/y in May, remaining well below the inflation target set at 4% y/y in 2020.

Further data and analysis on Brazil’s economy could be found on the CEIC Brazil Economy in a Snapshot – Q2 2020 report.