Brazil's IPCA-15 consumer price index declined by 0.40% in August 2026, after a 0.06% increase in the previous period, surpassing market expectations of a 0.30% drop. This was the first decline in a year and the sharpest since August 2022.
Housing costs fell by 1.41%, largely due to a 6.25% decrease in residential electricity tariffs, which exerted the strongest downward influence on the overall index. This reduction was mainly attributable to the Itaipu Bonus applied to electricity bills issued in August, while the yellow tariff flag remained in effect.
Additional downward pressure came from transportation and food, which fell by 1.00% and 0.57%, respectively. The decline reflected lower airfares and fuel prices, as well as cheaper key food items such as tomatoes, potatoes, carrots, and ground coffee.
On the upside, the largest increases were recorded in personal expenses (+0.66%), driven mainly by higher cigarette prices, and in education (+0.46%).
On a 12-month basis, IPCA-15 inflation eased to 4.24%, down from 4.52% in the previous reading and below market expectations of 4.34%.
