Brazil Inflation March 2016


Brazil: Inflation eases to 9-month low

April 8, 2016

Consumer prices in March increased 0.43% over the previous month. The print was below the 0.90% increase recorded in February and slightly better than market analysts’ expectations. The easing was mainly driven by falling prices for housing as well as a smaller rise in prices for education compared to the previous month. In contrast, prices for food and beverages rose at a faster pace.

Inflation in March eased to 9.4% from February’s 10.4%, which marked the lowest level since June 2015. The easing in price pressures comes after a number of hikes in the Central Bank’s SELIC rate in 2015 and a backdrop of recession. In addition, the effect of a number of price adjustments is beginning to fade. Despite the fall, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2016 at 7.1%, which is down 0.1 percentage points from last month’s forecast. For 2017, the panel expects inflation of 5.5%.


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Brazil Inflation Chart

Brazil Inflation March 2016

Note: Annual and monthly var. of IPCA consumer price index in %.
Source: Brazilian Institute of Geography and Statistics (IBGE).

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