Brazil’s inflation dynamics shifted sharply in August 2026 as the country’s Consumer Price Index (CPI) moved into negative territory on a month-over-month basis. According to data updated on 11 September 2026, the CPI fell by **0.32%** in August compared with July, reversing the modest **0.07%** month-over-month increase recorded in **July 2026**.
The figures highlight a notable cooling in price pressures over the latest period. While July’s CPI data showed prices edging slightly higher versus the previous month, August’s reading indicates an outright decline in the index. On a **month-over-month** comparison, the “actual” August figure is measured against July, whereas the “previous” July figure reflects the change relative to June.
This swing from mild inflation to a month-on-month drop in prices will likely draw attention from market participants and policymakers monitoring Brazil’s near-term inflation path and its potential implications for monetary policy and economic momentum.
