Brazil's annual consumer inflation slows down in August

By Ovunc Kutlu

ANKARA (AA) – Gain in Brazil's annual consumer inflation rate sharply slowed down in August from the previous monthly increase, according to official data released on Friday.

The consumer price index rose 8.73% in August year-on-year, slightly coming in line with market expectations of an 8.72% increase, and sharply slowing down from an annual gain of 10.07% recorded in July.

On a monthly basis, the consumer price index decreased 0.36%, recording the second consecutive month of deflation, the Brazilian Institute of Geography and Statistics (IBGE) said in a statement.

While the market estimate for the monthly figure was to show a decrease of 0.39% in August, consumer prices declined 0.68% in July.

The August figures were mainly influenced by the fall in the transport group with 3.37%, which contributed a minus 0.72 percentage point to the consumer price index for the month, according to the statement.

In addition, the communication group declined 1.1%, which had an impact of minus 0.06 percentage point to the index, it added.