Brazil Inflation February 2016


Brazil: Inflation edges down from over-12-year high

March 9, 2016

Consumer prices in February increased 0.90% over the previous month. The print was below the 1.27% increase recorded in January and broadly in line with market expectations. The easing was mainly driven by a smaller rise in prices for food and beverages, as well as transport, compared to the previous month. In contrast, prices for education increased notably due to seasonal demand.

Inflation in February eased to 10.4% from January’s 10.7%, which had marked the highest level since November 2003. Despite a number of hikes in the Central Bank’s SELIC rate in 2015 and the country’s depressed economy, inflationary pressures have risen dramatically over the course of the year and 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 7.0%, which is unchanged from last month’s forecast. For 2017, the panel expects inflation of 5.4%.


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Brazil Inflation Chart

Brazil Inflation February 2016

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

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