IPCA-15 deflation heralds a more favorable scenario for small businesses and jobs

For the first time in more than two years, the IPCA-15 (Broad National Consumer Price Index 15) registered a monthly reduction. The Brazilian Institute of Geography and Statistics (IBGE) announced this Tuesday (26) that the indicator registered a drop of 0.14% in August. The last drop had been 0.07% in July 2023.

The new result came after inflation of 0.33% last month. August's deflation was driven by the reduction in electricity bills resulting from the Itaipu bonus discount, which tends to be reflected in bills starting in September. Another factor contributing to the result was the drop in food and gasoline prices.

The announcement was celebrated by Sebrae president Décio Lima, who emphasized that the indicator shows that the integrated work, coordinated by the federal government, is on the right track. "There are many challenges, considering the international economic situation, but The first drop in inflation is good news that adds to other recent achievements, such as record job creation and Brazil's exit from the Hunger Map. ”, he commented.

Lower inflation positively impacts small businesses' production costs, making raw materials, inputs, and services more affordable. "Low inflation encourages the growth of the Brazilian economy's biggest driver: small businesses. This benefits the entire Brazilian population," Décio emphasizes.

"Micro and small businesses account for more than 97% of all companies and 70% of formal jobs created in the country. If they grow, Brazil grows with them."

Décio Lima, president of Sebrae Nacional

The IBGE index is composed of nine groups of products and services. The result was driven primarily by declines in housing prices (-1.13%), food and beverages (-0.53%), and transportation (-0.47%).

The IPCA-15 signals a trend for the IPCA, the country's official inflation indicator. One of the differences between the two is the period in which the IBGE collects data. IPCA-15 prices are calculated between the second half of the previous month and the first half of the reference month.