In June, Brazil posted its first monthly decline in consumer prices since 2006, with the 12-month inflation rate plunging to just 3.0%, the Brazilian Census Bureau (IBGE) said Friday. Overall consumer prices fell by 0.23% in June, with food and fuel prices down sharply. Overall prices had risen by 0.31% in May. The 12-month inflation rate fell to 3.0% as of June from 3.6% as of May, the IBGE said. It was the first monthly deflation since 2006 and the biggest monthly decline in prices since 1998. Brazil is commited to inflation of no more than 4.5% in 2017. Inflation at just 3.0% should lead the way to sharp cuts in interest rates by the Central Bank, according to economists. Inflation has waned this year because of rising oil produc tion and a record grain and oilseeds crop. Continued unemployment has also tended to hold down prices of manufactured goods and services.
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