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Brazil economy: Inflation slows to 0.07% in July as services and BNDES profits rise
Brazil's official inflation index, the IPCA, slowed to a 0.07% increase in July 2026, down from 0.16% in June. This deceleration was primarily driven by a 0.67% drop in the Food and Beverages group, led by significant price decreases in tomatoes, potatoes, and carrots. However, the Housing group exerted upward pressure with a 0.99% increase, largely due to a 3.09% rise in residential electricity costs. The 12-month accumulated inflation stands at 4.44%, remaining within the Central Bank's target tolerance range of 1.5% to 4.5%.
In the broader economy, the services sector grew by 2% in the first half of 2026 compared to the same period in 2025. Notable growth was seen in information and communication services, which rose 6.8%. While the sector remains near record levels, recent monthly data shows signs of stability.
Financially, BNDES reported a record recurring profit of R$ 9.2 billion for the first half of 2026, a 25% increase from the previous year. The bank's total assets reached a historic high of R$ 1.05 trillion.
Entities
Aloizio Mercadante · BNDES · Banco Central do Brasil · Brazil · Conab · Copasa · Copom · Dieese · IBGE · INPC · IPCA · OPEC
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] Basic food prices decreased in 26 of Brazil's 27 state capitals in July. www.cbnsantos.com.br · ppnewsfb.com.br · www.revistafundacoes.com.br
- [DISPUTED] The year-to-date IPCA accumulation is 3.44%. www.cbnsantos.com.br · portalterradaluz.com.br · www.reporterpb.com.br · ubajaranoticias.com.br · gazetamt.com.br · +7 more
- [DISPUTED] The inflation rate dropped from 0.16% in June to 0.07% in July. www.cbnsantos.com.br · imprensapublica.com.br · omatogrosso.com · portalterradaluz.com.br · www.reporterpb.com.br · +4 more
- [● 19 SOURCES] The 12-month accumulated IPCA is 4.44%. www.cbnsantos.com.br · portalterradaluz.com.br · www.reporterpb.com.br · revistasoberana.com.br · ubajaranoticias.com.br · +5 more
- [● 24 SOURCES] The IPCA rose 0.07% in July. www.cbnsantos.com.br · portalterradaluz.com.br · www.reporterpb.com.br · revistasoberana.com.br · ubajaranoticias.com.br · +7 more
- [● 19 SOURCES] The 12-month inflation rate returned to the government's target range of 1.5% to 4.5%. www.cbnsantos.com.br · portalterradaluz.com.br · www.reporterpb.com.br · revistasoberana.com.br · ubajaranoticias.com.br · +5 more
- [● 14 SOURCES] The Food and Beverages group decreased by 0.67% in July. www.cbnsantos.com.br · portalterradaluz.com.br · www.reporterpb.com.br · revistasoberana.com.br · ubajaranoticias.com.br · +2 more
- [● 7 SOURCES] The Housing group had the highest variation at 0.99%. www.cbnsantos.com.br · imprensapublica.com.br · omatogrosso.com
- [● 2 SOURCES] The services sector grew 2% in the first half of 2026. www.tribunapr.com.br · reporterbrasilia.com.br
- [● 9 SOURCES] The service sector grew 2% in the first half of 2026 compared to the same period in 2025. www.tribunapr.com.br · reporterbrasilia.com.br · portalbrasilempresarial.com.br · paranaempresarial.com.br · guamarenews.com · +3 more
- [● 3 SOURCES] BNDES recorded a recurring profit of R$ 9.2 billion in the first half of the year. euvivoaselecao.com.br · gazeta24h.com
- [○ 1 SOURCE] OPEC raised its growth estimate for Brazilian liquid fuel production for 2026 and 2027.