Brazil registers first monthly deflation in 11 years

Brazil registered in June its first deflation in 11 years, the country’s statistics agency IBGE said Friday.

The country’s inflation indicator IPCA was down 0.23 percent in June from the previous month, the first time it entered negative ground since 2006, the state statistics institute IBGE said.

Meanwhile, consumer prices rose 0.35 percent in the month compared to the same month last year.

The deflation was attributed to a long-term recession which has plagued Brazil.

Though the most recent GDP figures were positive, showing a mild growth of the economy, Brazil is still under the effects of a long economic crisis.

In addition, there are some seasonal effects in the Brazilian economy which traditionally cause June inflation to be lower than in other months.

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