Year-on-year inflation in Brazil fell from 11.89% in June to 10.07% in July, with a slowdown in prices caused by the reduction in fuel costs, the Government reported on Tuesday.

The relief in prices was due to the data for July, when a deflation of 0.68% was registered, according to data from the state-run Brazilian Institute of Geography and Statistics (IBGE).

Last June, inflation was 0.67% and in July 2021 it had been 0.96%.

The good figure for July is due, in part, to the reduction in fuel prices applied by the state oil company Petrobras and the law that set a ceiling on fuel taxes, explained in a statement the person responsible for the report, Pedro Kislanov.

Of the nine large groups analyzed by the IBGE, two registered deflation: transport (-4.51%) and housing (-1.05%), while the rest of the groups rose, including food and beverages (1.30 %).

Inflation in the largest Latin American economy reached 12.13% in April, the highest level since 2003.

Last week the Central Bank of Brazil raised the basic interest rate by half a percentage point, to 13.75% per year, its highest level since December 2016.

For this year, the Central Bank set an inflation target of 3.50% with a tolerance margin of 1.5 percentage points.

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