According to Brazil’s Broad National Consumer Price Index (IPCA), in July the price of a consumer coffee fell for the first time in 18 months.
The price of a cup of coffee in the South American country dropped by 1.01 per cent. According to Reuters, for the preceding year and a half coffee was one of the main drivers of inflation in Brazil.
As one of the largest coffee producing countries in the world, Brazil’s retail price drop is said to have followed a decline in prices paid to farmers following the harvest of the 2025 crop.
Recent fluctuations in global markets have been fuelled by developments such as US President Donald Trump’s decision to impose a 50 per cent tariff on Brazilian imports.
Last week, coffee futures in New York surged by 8 per cent amid investor concerns that the tariffs might disrupt trade between the United States – the world’s largest coffee consumer – and Brazil.
Fernando Goncalves, Manager at IBGE, told Reuters it is too early to tell if President Trump’s decision to hike tariffs against Brazilian goods could lead to lower prices of staples including coffee.
“It could be an effect of increased supply, and it’s not possible to say or confirm that it’s related to the tariff hike. The tariff hike only began this month,” he says.
