1334 ET - A decline in Brazil's main inflation gauge paves the way for an interest rate cut in September, TS Lombard's João Pedro Fachetti and Elizabeth Johnson say in a note. Consumer prices rose 0.07% in July, slowing from 0.16% in June, with 12-month inflation cooling to 4.4% from 4.6%, the IBGE statistics agency says. Fachetti and Johnson expect the central bank to cut rates for the fifth consecutive time in September, to 13.75% from 14%. They foresee hotter prices later this year, "raising the bar for the [BCB] to continue the easing cycle beyond September." Curbing government spending is also needed to ensure further easing, Fachetti and Johnson say.