FX.co ★ Brazil Producer Prices Extend Declines in July

Producer prices in Brazil experienced a decline of 0.3% in July 2025, marking the sixth consecutive month of decreases following a 1.27% drop in June. This deflationary trend was primarily driven by the metallurgy sector, which saw a reduction of 1.65%, along with decreases in metal products and food, which fell by 1.54% and 1.33% respectively. Overall, half of the 24 industrial activities recorded price decreases. On the other hand, the extractive industries and the sector for perfumery, soaps, and cleaning products registered increases of 2.42% and 1.41%, partially mitigating the overall downturn. In terms of categories, consumer goods prices decreased by 0.43%, whereas capital goods prices saw an increase of 0.51%. On an annual basis, producer inflation slowed to 1.36%, down from the previous rate of 3.22% in June.