Brazilian inflation drops below 10 percent for first time in a year

Twelve-month inflation in Brazil has receded to 8.73 percent. That is good news for consumers, but high prices for food and rising service costs pose a challenge for President Bolsonaro

Fuel prices are driving Brazil's inflation index down. Photo: Bruno Cesar Spada/Shutterstock
Fuel prices are driving Brazil’s inflation index down. Photo: Bruno Cesar Spada/Shutterstock

Inflation continued to cool down in August as gas prices fell, a welcome reprieve for consumers and the Jair Bolsonaro government — which, three weeks from Election Day, is trying to make voters believe the president is steering the Brazilian economy in the right direction.

The IPCA consumer price index dropped 0.36 percent in August, in what was a second straight month of deflation. With the results, 12-month inflation dropped below 10 percent for the first time in a year, now sitting at 8.73 percent. 

But today’s inflation report is not yet a conclusive sign that price increases — which have...

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