Official inflation was negative in August, ie prices were cheaper on average. THE National Consumer Price Index (IPCA) closed the month at -0.11%. The data were released on Wednesday (10) by the Brazilian Institute of Geography and Statistics (IBGE).
In July, the index had been 0.26%. This deflation (negative inflation) is the first since August 2024 (-0.02%) and the most intense since September 2022 (-0.29%).
With the result of August 2025, the 12 -month accumulated reaches 5.13%, below 5.23%of the 12 months ending in July, but still above the government’s goal of up to 4.5%.
The electricity bill retreated 4.21% in the month, representing a negative impact of 0.17 percentage point (PP), figuring as the sub -item that more pulled inflation down. With this, the housing group retreated 0.90%.
The explanation is in the so -called Itaipu bonus, discount on the account that benefited 80.8 million consumers. As the Brazil agency, the bonus Compensated the red tariff flag 2, which adds $ 7.87 to the account and light every 100 kWh consumed.
THE Food and Beverage Group (-0.46%) fell for the third month in a row. Transport (-0.27%) also helped to leave the IPCA Negative IPCA.
Official inflation
The IPCA investigates the cost of living for families with income between one and 40 minimum wages. Currently the minimum value is R $ 1,518.
IPCA price collection is made in ten metropolitan regions – Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Vitória, Rio de Janeiro, Sao Paulo, Curitiba, Porto Alegre – besides Brasilia and in the capitals Goiânia, Campo Grande, Rio Branco, Sao Luís and Aracaju.
>> Understand the different rates of inflation
The index is the main metric for monitoring the inflation target policy. The current goal set by the National Monetary Council (CMN) is 3%, with tolerance of 1.5 percentage points to more or less, ie an interval of 1.5%to 4.5%.
Since the beginning of 2025, the target evaluation period for 12 months immediately passed and not just the one reached at the end of the year (December). The goal is only considered breach if the interval of tolerance bursts for six straight months, which happened in June.
