Brazil IPCA-15 records 0.4% deflation in August driven by energy and food costs

Brazil's mid-month inflation index (IPCA-15) fell 0.4% in August, exceeding expectations due to a significant drop in electricity prices linked to the Itaipu bonus and sustained deflation in food prices. While current data shows a downward trend, analysts identify El Niño as a primary risk factor for future food and energy price volatility.