1. IPCA: Prices drop by 0.02% in August, marking Brazil’s first deflation of the year

The Extended Consumer Price Index (IPCA), considered the country’s official inflation rate, showed a 0.02% drop in prices in August, according to data released on Tuesday (10) by the Brazilian Institute of Geography and Statistics (IBGE). During this month, two of the nine groups that make up the index saw reductions, leading to the first deflation of the year and the lowest rate since June 2023 (-0.08%).

Food and Beverages experienced a 0.44% decrease in August, contributing -0.09 percentage points (p.p.) to the overall index. Meanwhile, Housing recorded a 0.51% reduction, accounting for -0.08 p.p. Together, these two groups represent 36.53% of the IPCA’s total composition. The country’s accumulated inflation over the past 12 months is 4.24%, and the increase so far this year stands at 2.85%.

G1: IPCA: preços caem 0,02% em agosto, na primeira deflação do ano

2. Brazil’s service sector records unexpected growth in July, reaching a record high

The volume of services in Brazil was above expectations in July, registering growth for the second consecutive month and kicking off the third quarter at a record level. These results contributed to the strong performance of the economy. Service volume increased by 1.2% compared to June, significantly exceeding the 0.1% decline forecasted in a Reuters poll. With this growth, the sector reached a new record, surpassing the level recorded in the previous month, according to the Brazilian Institute of Geography and Statistics (IBGE).

Compared to July last year, there was a 4.3% increase, well above the projected 2.4%. With low inflation, rising incomes, and a strong labor market, the service sector is expected to continue contributing positively to the Brazilian economy this year, though sector-specific inflation remains a concern.

Terra: Setor de serviços do Brasil tem alta inesperada em julho e renova patamar recorde

3. 76% of fires in South America are in Brazil, potentially impacting the economy

In the last 24 hours, Brazil recorded 5,132 fire outbreaks, accounting for 75.9% of the areas affected by fire across South America, according to the Fire Monitoring Program of the National Institute for Space Research (INPE). The increase in fire outbreaks occurred mainly in the Cerrado biome, which surpassed the Amazon in affected areas, registering 2,489 fire outbreaks between September 9 and 10.

In the first days of September, the number of fire outbreaks in the country has already more than doubled compared to the same period in 2023. In just 10 days, 37,492 outbreaks were recorded, while the previous year saw 15,613. According to INPE, this increase is the result of a combination of factors, including the second consecutive year of El Niño, followed by La Niña, global warming, and human intervention.

Carta Capital: Brasil concentra 76% dos incêndios na América do Sul

4. 74% of Brazilians shop online every month

E-commerce has become a regular practice among Brazilians, with 74% of consumers making online purchases at least once a month. This data comes from a study conducted by Akamai, which aimed to understand consumer habits, payment preferences, and concerns about security in the digital environment.

According to the study, 43% of Brazilian consumers shop online at least once a week. Among these, 6% said they shop daily, 20% weekly, and 17% more than once a week. When analyzing the results by age group, younger consumers stand out in terms of frequency. Among those aged 25 to 29, 31% shop more than once a week, while 7% shop daily.  

CanalTech: 74% dos brasileiros fazem compras online mensalmente, revela pesquisa

5. Unemployment insurance claims surge despite strong economic activity in the country

The number of unemployment insurance claims in Brazil has been rising in recent months, despite the resilience of the Brazilian labor market. With the increase in requests for this benefit – which is aimed at workers dismissed without cause – the total amount disbursed by the government has also shown significant growth. Claims for the benefit rose from 6.98 million in July 2023 to 7.35 million in July of this year, considering the cumulative total over the last 12 months.

During the same period, unemployment insurance expenses reached R$ 4.21 billion, representing a 10% increase compared to the previous month. Over the 12-month cumulative period, total expenditures amounted to R$ 45.24 billion by July. Economists explain that the primary reason behind this rise is the strong labor market, with more hirings and dismissals without cause, which entitles the dismissed employee to request the benefit. 

Valor: Pedidos de seguro-desemprego disparam, apesar de atividade econômica em alta