Good morning! Today, we talk about Brazil’s fresh inflation numbers. The Big Center is ready to join Lula. How Brazil plans to boost defense exports. And a look into FDI and which cities export Brazil’s soybeans, crude oil, and iron ore.
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Brazil records deflation in June
Consumer prices fell 0.08 percent in June, according to Brazil’s official IPCA inflation index.
Why it matters. Over 12 months, inflation has now fallen to 3.16 percent — below the inflation target (3.25 percent for 2023) for the first time since October 2020. That puts immense pressure on the Central Bank’s Monetary Policy Committee to cut the policy interest rate from its current level of 13.75 percent.
Good inflation omens. The price of food, which weighs enormously in the basket of goods for poor Brazilians, deflated 0.7 percent in June.
- “In recent months, prices for grains such as soybeans have fallen. This impacted the price of soybean oil directly and the prices of meat and milk indirectly, for example,” said André Almeida, a research...