Brazil: Inflation falls to 20-month low in October
November 9, 2016
Consumer prices in October increased 0.26% over the previous month, which was above September’s 0.08% rise. The print was below the 0.44% increase recorded in August and undershot market analysts’ expectations of a 0.28% rise. The rise in price pressures was due to an increase in transportation prices.
Inflation fell in October to a 20-month low of 7.9% from September’s 8.5%. Inflation has fallen notably this year, paving the way for a cut in the Central Bank’s SELIC interest rate to support an economic recovery. Despite the gains made, inflation still remains above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.