Brazil clocked a monthly inflation rate of 0.23% in July, bringing the 12-month rate down to 2.71%, its lowest level since early 1999, the Brazilian Census Bureau (IBGE) said Wednesday. June registered monthly deflation of 0.23% while the 12-month rate that month was 3.0%. Inflation has been on a downward course all year, with prices easing due to tight money, slack demand and a record grain and oilseeds crop. Food prices fell, in absolute terms, in July but services costs rose. The 12-month inflation rate is well below the government’s 2017 target of 4.5%. The continued decline in the inflation rate will likely prompt the Central Bank to lower interest rates, according to economists.
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