Brazil: Inflation edges down from over-12-year high
March 9, 2016
Consumer prices in February increased 0.90% over the previous month. The print was below the 1.27% increase recorded in January and broadly in line with market expectations. The easing was mainly driven by a smaller rise in prices for food and beverages, as well as transport, compared to the previous month. In contrast, prices for education increased notably due to seasonal demand.
Inflation in February eased to 10.4% from January’s 10.7%, which had marked the highest level since November 2003. Despite a number of hikes in the Central Bank’s SELIC rate in 2015 and the country’s depressed economy, inflationary pressures have risen dramatically over the course of the year and inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.