Inflation should have second consecutive fall in August, says IPC coordinator at FGV

The month of August should register an inflation of -0.52%, driven by the drop in gasoline prices and the slowdown in food. The projection is by the coordinator of the Consumer Price Index at Fundação Getúlio Vargas (FGV), André Braz.

If the estimate comes true, this will be the second consecutive month with deflation. In July, the index was -0.68%. From January to July, inflation is at 4.77%, with a cumulative 10.77% in the 12-month period.

According to André Braz, the drop will be spread by the fuel sectors, especially by the successive drops in the price of gasoline announced by Petrobras, energy and telephony. The food segment, as stated by the expert, will suffer a slowdown.

“There will also be a good surprise in the food at home, it may even appear with a negative number. Mainly in processed foods, such as wheat derivatives, beef, poultry. But it’s not exactly a fall, it’s a deceleration, a slower pace of growth”, points out the economist.

In addition, Braz predicts, fuels and energy will continue to pull the index down due to the reduction in the Tax on Circulation of Goods and Services (ICMS).