The city on the beach in Brazil

Brazil Inflation December 2020

Brazil: Inflation rises to over one-year high in December

Consumer prices increased a seasonally-adjusted 1.35% in December over the previous month, accelerating from the 0.89% rise seen in November. December’s figure was the sharpest increase in prices since February 2003. Looking at the details of the release, housing prices rose at a quicker pace in December compared to the previous month, while prices pressures for transport also gained steam

Inflation came in at 4.5% in December, above November’s 4.3%. December’s reading marked the highest inflation rate since May 2019. Meanwhile, annual average inflation was unchanged at November’s 3.2% in December.

Commenting on the outlook for inflation, Alberto Ramos, economist at Goldman Sachs, noted:

“In our assessment, at this stage the main upside risk to inflation is financial rather than economic/demand. Failure to address medium-term fiscal sustainability concerns could generate pressures on the capital account, un-anchor the currency and inflation expectations and through those channels contribute to deteriorate what has been hitherto a rather benign inflation backdrop.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest