Brazilian inflation in July remained the route of slowdown. Data from the Brazilian Institute of Geography and Statistics (IBGE) show that the official indicator of cost of living stood at 4.96% in the year to last month - well number lower than the 6.83% recorded in the same period of the year.

These figures released by the IBGE are part of the Consumer Price Index (IPCA), an indicator that is considered the official inflation rate in the country. In the comparison between June and July, the IPCA increase of 0.52%.

Among the product groups, some became less pressing the consumer's pocket, like clothing, whose prices fell 0.38% in the month, and housing, down 0.29%.

Other segments have small variations.The group communication products, for example, a high of 0.02%; education marked increase of 0.04%.

Despite some improvement in certain prices, the economic team of President Michel Temer in exercise has been working to reduce the pressure on the pockets of consumers.

Recovery 

Measures to clean up the economy, such as establishing limits to the expansion of public spending, should collaborate to control the cost of living.It is also expected the Central Bank, which estimates that the steps taken so far and other future actions, inflation will slow.

The expectation of the institution is that it cool until the pursued goal, a IPCA around 4.5%. This value, by the Central Bank scenario will be achieved in the last quarter of 2017.

If this projection is confirmed, will be the first time since 2009, when the index ended the year at 4.31%, the Central Bank will achieve the inflation target.

The expectation is that it continues to decelerate after reaching this result. In the first quarter of 2018 would reach 4.4% and in the second (last forecast available) by 4.2%.

weather problems affect production

The result of the July IPCA could be better, not for the performance of some products, due to weather problems and crop failures are temporary upward movement. The carioca beans, for example, increased 32.42% in the month and 150.61% in the year.

The National Supply Company (Conab), which makes a survey of the crop of the country, explained that the bean goes through problems. According to the body, there is a reduction in the area and in the production of first and second crops cultures. For the third harvest is estimated area reduction in almost all producing states.

The planted area of ​​the first harvest beans decreased by 7.5%; the second harvest, down 3%; the third shows a reduction of 16.8%. The evaluation of Conab is that planting is being finalized in most states, but the low level of water sources is inhibiting irrigation and damaging production, which makes prices rise.