Brazil Inflation October 2019

Brazil

Brazil: Inflation drops to lowest level since August 2017 in October

November 7, 2019

Consumer prices rose 0.10% in October over the previous month, contrasting September’s 0.04%. The result marked the lowest reading recorded for the month of October since 1998, although was slightly above market expectations of a 0.07% increase. A mild rebound in prices for food and beverages, and transport drove the reading, while housing prices dropped notably.

Inflation fell to 2.5% in October, down from September’s 2.9% and marking the lowest reading since August 2017. Inflation lies far below the Central Bank’s target of 4.25% for the end of 2019. That said, inflation should rise by the end of the year amid higher food price pressures and electricity price hikes.

Accordingly, annual average inflation, fell to 3.8% in October from September’s 3.9%.

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2020 at 3.8%, which is down 0.1 percentage points from last month’s forecast. For 2021, the panel also expects inflation of 3.8%.


Author: Angela Bouzanis, Lead Economist

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Brazil Inflation Chart


Brazil Inflation October 2019 0

Note: Annual and monthly var. of IPCA consumer price index in %.
Source: Brazilian Institute of Geography and Statistics (IBGE).


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