Brazil Inflation


Inflation remains stable in August

In August, consumer prices increased 0.41% over the previous month, which virtually mirrored the 0.43% rise recorded in July but was slightly above market expectations of a 0.40% price increase. The result mainly reflected higher prices for food and beverages. As a result of the monthly price rise, annual headline inflation remained unchanged from July's 5.2%, which remains within the Central Bank's target of 4.5% with a tolerance margin of plus/minus 2.0 percentage points. The Central Bank expects inflation to decline to 4.4% by the end of 2012 and to accelerate to 5.2% by the end of 2013.


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