Brazil Inflation


Brazil: Inflation eases from highest rate in nearly three years

November 7, 2014

Consumer prices in October increased 0.42% over the previous month. The print was below the 0.57% increase recorded in September and market expectations of a 0.48% rise. The result was driven by a slowdown in food and beverage price increases, as well as in housing.

As a result of the monthly reading, annual headline inflation decreased from 6.7% in September, which had marked the highest rate in almost three years, to 6.6% in October. However, inflation still remains above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around its target of 4.5%.

The Central Bank sees inflation at 6.4% at the end of 2014. For 2015, the Bank sees inflation closing the year at 6.0%. LatinFocus Consensus Forecast participants see inflation closing 2014 at 6.4%, which is up 0.1 percentage points from last month’s forecast. For 2015, the panel expects inflation of 6.4%, which is also up 0.1 percentage pointsfrom the previous month’s projection.

Author: Angela Bouzanis, Senior Economist

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Brazil Inflation Chart

Brazil Inflation October 2014

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

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