August IPCA records a decrease of 0.11%, the first deflation in a year, says IBGE

The country experienced a deflation last month, with the result being 0.37 percentage points (p.p.) below the 0.26% rate in July. However, the decrease in prices in August was lower than market expectations, which pointed to a deflation of 0.15% in the IPCA for August. With the August results, the IPCA has accumulated an increase of 5.13% in the last 12 months, remaining above the inflation target set by the National Monetary Council (CMN), which is 3%. In 2025, prices have already risen by 3.15%. In August, the Housing group led the price decrease, falling by 0.91% in the month and accumulating 0.15 percentage points on the general index. According to IBGE, this was the lowest result for an August month since the Real Plan in 1994. The standout subitem was residential electricity, which decreased by 4.21% in the month due to the incorporation of the Itaipu Bonus, credited on the invoices issued in August. On the other hand, the Education group recorded the highest increase in the index, rising by 0.75% in the month.