FX.co ★ Brazil’s IGP-M Inflation Gauge Deepens Deflation in July, Falls 1.16%

Brazil’s General Market Price Index (IGP-M) posted a sharper decline in July 2026, reinforcing a deflationary trend in wholesale and contracted prices. The index fell 1.16% month-over-month, compared with a 0.50% drop in June 2026, according to data updated on 30 July 2026.

On a month-over-month comparison basis, the July reading shows that price pressures continued to ease, with the pace of decline more than doubling from the previous month. In June, the IGP-M had already dipped 0.50% compared with May, but July’s -1.16% result signals a further broad-based retreat in prices captured by the index.

The deepening negative print is closely watched by markets because the IGP-M serves as a reference for a wide range of contracts in Brazil, including rents and some utility tariffs. The extended deflationary move in June and July could translate into lower contract adjustments ahead, with potential impacts on corporate revenues and household expenses in the coming months.