Brazil: Higher food and transport prices fuel inflation
October 7, 2011
In September, consumer prices increased 0.53% over the previous month, which was above the 0.37% increase recorded in August but slightly below market expectations of a 0.55% rise. The result mainly reflected higher prices in the food and transport categories. Annual headline inflation inched up from 7.2% in August to 7.3% in September and has been accelerating continuously since August 2010. Inflation, therefore, remains above the tolerance margin of the Central Bank's target of 4.5% ( 2.0 percentage points) for a fifth straight month. Despite mounting inflationary pressures, however, the Central Bank expects inflation to decline to 6.4% by the end of 2011 and to 4.7% by the end of 2012.