Brazil: Inflation climbs to highest level in almost 12 years in October
November 6, 2015
Consumer prices in October increased 0.82% over the previous month. The print was above the 0.54% increase recorded in September and overshot market expectations of a 0.80% rise. The monthly result was mainly driven by higher prices for transportation—caused by a large increase in fuel prices—as well as for food and beverages.
Inflation in October climbed from September’s 9.5% to 9.9%, which marked the highest figure 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 a number of hikes in the Central Bank’s SELIC interest rate and the economy being in recession.