Brazil August IPCA -0.32% m/m, largest drop in 4 years, boosts rate-cut bets

Brazil's August IPCA fell 0.32% month-on-month, the steepest monthly decline in four years, reinforcing market expectations for another Selic rate cut at next week's Copom meeting. The deflationary print, if confirmed, signals weakening domestic demand and could accelerate the easing cycle, though the central bank's reaction function remains data-dependent.