Aug. 27 (Bloomberg) -- Brazil's broadest measure of inflation, the IGP-M price index, fell 0.32 percent in August, the Getulio Vargas Foundation said.

The drop in consumer, construction and wholesale prices, as measured by the IGP-M, compares to a 1.76 percent increase in July, the Rio de Janeiro-based Getulio Vargas Foundation said today in a report released on its Web Site.

The yield on the overnight interest rate future contract for January 2010 delivery rose to 14.690 percent at 7:18 a.m. New York time in electronic trading, up from yesterday's close of 14.687 percent.

The monthly figure compares to the median forecast of a 0.20 percent decline in a Bloomberg survey of 28 analysts.

To contact the reporter on this story: Joshua Goodman in Rio de Janeiro jgoodman19@bloomberg.net

Last Updated: August 27, 2008 07:21 EDT