In December, the benchmark IPCA (indice Nacional de Precos ao Consumidor Amplo) price index added 0.63% compared to November's 0.83% reading, which slightly overshot market expectations that saw prices rising 0.60%. As a result, annual headline inflation increased from 5.6% in November to 5.9% in December, rising for a fourth consecutive month. December's monthly price increase was broad-based, as all the nine categories that compose the consumer price index registered higher prices. Prices for food and beverages, which rose 1.32% month-on-month, were the main driver behind the monthly increase. The average of core inflation indices, which smoothes out more volatile price fluctuations, added 0.66% in November, which pushed up annual core inflation to 5.4%. With the December increase, inflation further rose above the Central Bank's 4.5% target for 2010. Despite the recent price pressures, the Monetary Policy Committee (COPOM, Conselho de Politica Monetaria) decided unanimously to leave the benchmark SELIC interest rate unchanged at 10.75% at its latest meeting on 8 December. In its December Inflation Report the Central Bank expects inflation to end 2011 at 5.0% and 2012 at 4.8%.
Inflation accelerates in December as food prices increase
January 7, 2011
Looking for forecasts related to Inflation in Brazil? Download a sample report now.
Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.