Brazil: Inflation eases to 9-month low
April 8, 2016
Consumer prices in March increased 0.43% over the previous month. The print was below the 0.90% increase recorded in February and slightly better than market analysts’ expectations. The easing was mainly driven by falling prices for housing as well as a smaller rise in prices for education compared to the previous month. In contrast, prices for food and beverages rose at a faster pace.
Inflation in March eased to 9.4% from February’s 10.4%, which marked the lowest level since June 2015. The easing in price pressures comes after a number of hikes in the Central Bank’s SELIC rate in 2015 and a backdrop of recession. In addition, the effect of a number of price adjustments is beginning to fade. Despite the fall, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.