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Inflation slows down in January but remains in double digits

Brazil's inflation remains in the double digits, affecting consumers' purchasing power. Photo: Alf Ribeiro / Shutterstock.com
Brazil’s inflation remains in the double digits, affecting consumers’ purchasing power. Photo: Alf Ribeiro / Shutterstock.com

Consumer prices in Brazil measured by the IPCA index rose 0.54 percent in January, slowing down from the 0.73-percent bump registered in December, according to data released this Wednesday by the Brazilian Institute of Geography and Statistics (IBGE). The inflation result was within market expectations, despite being the highest increase for January since 2016. 

In the 12-month period, the index is up 10.38 percent, above the 10.06 percent recorded in December 

January inflation was mainly driven by a 1.11-percent price increase in the food and beverages segment. Compared to December, however, transport was the only area out of nine surveyed by the IBGE to see deflation, largely due to a drop in prices of airfares, ethanol, and gasoline (-18.35%, -2.84%, and -1.14% respectively).