According to data from the Extended National Consumer Price Index (IPCA), released today by the IBGE, August inflation in Brazil slowed to 0.11%, after registering high of 0.19% in July.
The IBGE indicated a deflation in the Food & Beverage (-0.35%) and Transport (-0.39%) groups. Housing, with a high of 1.19%, was the group that positively pressured inflation. Thus, official inflation in Brazil was 0.11% in August and 3.43% in the last 12 months.
According to data from the National Association of Automotive Vehicle Manufacturers (Anfavea), vehicle production in Brazil fell 7.3% in August. Industry exports plunged 34.6% in August 2019 compared to August 2018. This result was greatly impacted by the crisis in Argentina, the largest buyer of cars produced in Brazil.
This scenario, coupled with the very weak performance of the Brazilian economy, reinforces the idea that 2019 may have a negative GDP in Brazil.
