Brazil: Inflation ends 2016 within Central Bank's target range
January 11, 2017
Brazilian consumer prices in December increased 0.30% over the previous month, which was above November’s 0.18% rise and undershot the 0.27% figure analysts expected. The rise in consumer prices was driven by higher prices for food and drinks and a surge in transportation prices.
Inflation dropped in December to an over two-year low of 6.3%, below November’s 7.0%. Inflation fell notably in 2016 after ending 2015 at 10.7%, leading the Central Bank to cut the SELIC interest rate multiple times to support an economic recovery. As a result of the fall, inflation is now within the Central Bank’s target band of 2.5%-6.5%.