Brazil: Inflation falls again in September
October 9, 2013
Consumer prices rose 0.35% in September over the previous month. The increase, which was above the negligible 0.24% rise recorded in August, was in line with market expectations. Prices increased in the majority of the categories monitored, with apparel and transport recording the highest rises.
Annual headline inflation fell from 6.1% in August to 5.9% in September, marking the first reading below 6.0% this year. Thus, inflation remains within the Central Bank's tolerance margin of plus/minus 2.0 percentage points around the target of 4.5%.
The Central Bank expects inflation to moderate to 6.0% by the end of this year and to ease further to 5.4% by the end of 2014. LatinFocus Consensus Forecast participants see inflation closing 2013 at 6.0%, which is unchanged from last month's forecast. For 2014, the panel sees inflation at 5.9%, which is also unchanged from last month's projection.
Author: Carl Kelly, Economist