Brazil Inflation


Inflation continues to decelerate in February

In February, consumer prices increased 0.45% over the previous month, which was below the 0.56% increase recorded in January but in line with market expectations. The result mainly reflected an increase in prices for education, due to the price adjustments implemented in the beginning of the school year. Annual headline inflation, however, decelerated for the fifth consecutive month and declined from 6.2% in January to 5.8% in February, settling within the Central Bank's target of 4.5% 2.0 percentage points. The Central Bank expects inflation to decline to 4.7% by the end of 2012 and to end 2013 at the same 4.7%.


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