Brazil: Inflation eases in August
September 6, 2018
Consumer prices fell 0.09% in August over the previous month, contrasting July’s 0.33% rise and marking the first drop in over a year. Lower prices for food and beverages as well as for transport drove the decline.
Inflation eased from 4.5% in July, which had marked the highest reading since March 2017, to 4.2% in August. Inflation is within the Central Bank’s target of 4.5% plus or minus 1.5 percentage points. Annual average inflation rose from 3.0% in July to 3.2% in August.
Brazil Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2018 at 4.0%, which is unchanged from last month’s forecast. For 2019, the panel expects inflation of 4.3%.