Brazil consumer prices forecast to have dropped 0.15% in August vs July: Reuters poll

Group 1 - Brazil's consumer price index (IPCA) is forecasted to have decreased by 0.15% in August compared to July, primarily due to a special discount in electricity bills and stable food costs [1][2] - The 12-month inflation rate for August is projected at 5.09%, the slowest since February, but still above the central bank's target of 3% plus a 1.5 percentage point tolerance margin [3][4] - A significant decline in electricity costs was attributed to a one-off discount related to hydroelectric dam Itaipu, which is expected to diminish by the end of the month [3][5] Group 2 - Food prices and industrial prices have shown a decline, contributing to the overall inflation drop, aided by the appreciation of Brazil's real currency [4][5] - Services inflation remains a concern, running at an annual rate of around 6%, indicating persistent cost pressures in that sector [5][6] - The central bank maintained the benchmark Selic rate at 15% after a tightening campaign, with expectations for an easing cycle potentially starting next year, delayed from the second half of 2025 due to weaker-than-expected disinflation [6][7]