Food Price Drop Provides Relief in Brazil Inflation Fight
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The first decline in food prices in two years provided temporary assistance to Brazilian President Dilma Rousseff’s efforts to tame inflation being pressured by the biggest currency slide among emerging markets.
Prices as measured by the benchmark IPCA index rose 0.03 percent in July, in line with analysts surveyed by Bloomberg whose median forecast was for prices to remain unchanged. Cheaper food costs, as well as declines for transportation and clothing, lowered 12-month inflation, which had exceeded the 6.5 percent upper limit of the government’s target range, to 6.27 percent.