Brazil: Inflation decreases in January
February 7, 2014
Consumer prices rose 0.55% in January over the previous month. The print was above both the 0.92% increase recorded in December and market expectations of a 0.61% rise. Prices fell in five of the nine categories monitored, with transportation recording the largest decrease.
Annual headline inflation decreased from 5.9% in December to 5.6% in January. Inflation is still within the Central Bank's tolerance margin of plus/minus 2.0 percentage points around its target of 4.5%. In the full year 2013, inflation was 6.2%, which was above the 5.4% recorded in 2012.
The Central Bank sees inflation at 5.7% at the end of 2014. LatinFocus Consensus Forecast participants see inflation closing 2014 at 5.9%, which is unchanged from last month's forecast. For 2015, the panel sees inflation at 5.5%.
Author: Carl Kelly, Economist