Brazil’s General Market Price Index (IGP-M) posted a deflation of -0.22% in August 2026, marking a second consecutive month of negative readings but with a notable easing compared to July’s deeper decline. The latest figure, updated on 28 August 2026, follows a -1.16% month-over-month change recorded in July 2026.
On a month-over-month comparison, August’s result indicates that prices are still falling in aggregate, but at a slower pace than in the previous month. While July’s -1.16% reading pointed to a more pronounced deflationary move versus June, the August index suggests some stabilization in price dynamics. Investors and analysts tracking Brazil’s inflation trajectory will likely interpret the softer deflation as a potential sign that the most intense downward pressure on prices may be beginning to subside.
The IGP-M, widely referenced in Brazil for contract adjustments and rent indexation, thus continues to signal a disinflationary environment as of August, albeit with a less aggressive monthly drop than seen in July. Market participants will now watch upcoming releases to assess whether the trend shifts toward neutral or positive monthly inflation in the months ahead.
