Weekly Report - 08 August 2013 (WR-13-31)

There was a sharp dip in inflation in July, according to figures released by the national statistics institute (Ibge) on 7 August. Prices as measured by the benchmark Ipca index rose 0.03% in July, down from a 0.26% increase from June to May. On a 12-month basis, inflation slipped to 6.27% from 6.70%, bringing it in line with the central bank’s target band of 4.5% plus or minus two percentage points. President Dilma Rousseff, mindful of next year’s election, welcomed the news enthusiastically; her finance minister Guido Mantega, was somewhat more cautious.