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Inflation slowed down again in Brazil and year-on-year inflation fell from 8.73% in August to 7.17% in September, thanks to the fall in fuel prices, especially gasoline, the government reported on Tuesday.
In September, inflation decelerated by 0.29%, which is the third consecutive drop in the rate after the deflations registered in July (-0.68%) and August (-0.36%), according to the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística).
In the cumulative figure through September, inflation stood at 4.09%.
Since July, the deceleration of prices has been impacted by the fall in fuel prices and especially by gasoline prices, which in September fell by 8.33% due to the reduction of federal taxes approved by the government of President Jair Bolsonaro, who is seeking reelection, an issue that Brazil will decide in the ballot on October 30.
Of the nine groups of products and services analyzed by IBGE, three fell in September: transportation (-1.98 %), communications (-2.08 %), and food and beverages (-0.51 %).
For this year, the Central Bank has set an inflation target of 3.50% with a tolerance margin of 1.5 percentage points, although it has already admitted that it will not be met this year.
According to the estimates of financial market economists released the day before by the Central Bank, the country will close with an inflation rate of 5.71%, lower than the 6.40% forecast four weeks ago, while for 2023 inflation is expected to be 5.00%.