Brazil: Inflation falls to near two-year low in November
December 9, 2016
Brazilian consumer prices in November increased 0.18% over the previous month, which was below October’s 0.26% rise and undershot the 0.27% figure analysts expected. The rise in consumer prices was driven by higher prices for housing, clothing, transport and healthcare, while the price of food and drink and household equipment fell compared to the prior month.
Inflation dropped in October to a near two-year low of 7.0%, below September’s 7.9%. Inflation has fallen notably in 2016, leading the Central Bank to cut the SELIC interest rate twice this year to support an economic recovery. Despite the fall, inflation still remains above the Central Bank’s target band of 2.5%-6.5%.
Author: Oliver Reynolds, Economist