Brazil: Inflation climbs to over 12-year high
January 13, 2016
Consumer prices in December increased 0.96% over the previous month. The print was down from the 1.01% increase recorded in November and undershot market expectations of a 1.05% rise. The monthly result was mainly driven by a slower rise in prices for food and beverages as well as for housing.
Inflation in December climbed from November’s 10.5% to 10.7%, ending the year at the highest level seen since 2002. Despite a number of hikes in the Central Bank’s SELIC rate in 2015, inflationary pressures have risen dramatically over the course of the year and inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.