FX.co ★ Brazil’s Producer Prices Extend Decline in July, Deepening Deflationary Trend

Brazil’s Producer Price Index (PPI) fell further into negative territory in July 2026, signaling a continued easing of price pressures at the factory gate. According to the latest data updated on 28 August 2026, producer prices declined by 0.83% month-over-month, following a 0.77% drop in June 2026.

The July reading, which compares price changes to the previous month, confirms that producer-level deflation is not only persisting but slightly intensifying. The June figure reflected a 0.77% month-on-month fall versus May, while July’s 0.83% decline marks a modest acceleration in the downward trend. This extended contraction in producer prices may translate into softer cost pressures for downstream industries and potentially temper consumer inflation in the coming months.