Brazil: Inflation declines further in October
November 7, 2013
Consumer prices rose 0.57% in October over the previous month. The increase, which was above the negligible 0.35% rise recorded in September, was roughly in line with market expectations of a 0.60% rise. Prices rose in all of the categories monitored, with the food and beverages category recording the greatest increase.
Annual headline inflation fell from 5.9% in September to 5.8% in October, marking the lowest point in nearly a year. Inflation remains within the Central Bank's tolerance margin of plus/minus 2.0 percentage points around the target of 4.5%.
The Central Bank sees inflation at 5.8% at the end of this year and expects it to ease to 5.7% by the end of 2014. LatinFocus Consensus Forecast participants see inflation closing 2013 at 5.9%, which is unchanged from last month's forecast. For 2014, the panel sees inflation at 5.9%, which is also unchanged from last month's projection.
Author: Carl Kelly, Economist