Brazil: Inflation climbs in July to almost 12-year high
August 10, 2015
Consumer prices in July increased 0.62% over the previous month. The print was below the 0.79% increase recorded in June but overshot market expectations of a 0.60% rise. The monthly result was driven largely by higher prices for electricity.
Headline inflation rose from 8.9% in June to 9.6% in July, which marked the highest rate since November 2003. As a result, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%. Inflationary pressures have risen dramatically since the beginning of the year despite consistent hikes in the Central Bank’s SELIC interest rate.