By Lise Alves, Senior Contributing Reporter
SÃO PAULO, BRAZIL – The inflation rate in Brazil, according to the IBGE (Brazilian Statistics Bureau) rose again in August, after registering its lowest rate in almost four years in July. The IPCA (Consumer Price Index) registered an increase from 0.1 percent in July to 0.25 percent in August. In August of 2013 the IPCA rate was of 0.24 percent.
According to Eulina Nunes dos Santos, coordinator of the index at the IBGE, the transportation group was the segment which accelerated the most between July and August, going from a decline of 0.98 percent to an increase of 0.33 percent in August. Air travel suffered an increase of 10.16 percent in August, in comparison to a decline of 26.86 percent in July.
August’s inflation was also increased due to higher costs in housing, domestic help and electricity costs. Gasoline prices, which in July had fallen by 0.80 percent, last month registered an increase of 0.30 percent.
The segment of food and beverages, on the other hand, continued July’s downward trend in August, decreasing another 0.15 percent last month. According to Santos, the forecast for the upcoming Brazilian grain harvest is of a 2.36 percent increase from last year, totaling 193 million tons of grains.
With the latest inflation results, the IPCA accumulates an inflation rate of 4.02 percent for the year and 6.51 percent for the last twelve months. The twelve-month inflation rate is above the government’s official annual inflation target of 6.50 percent.
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