Brazil: Inflation hits seven-month high in September
Inflation came in at 5.2% in September, up from August’s 4.6%. September’s result was the highest inflation rate since February. While the print undershot market expectations, it was markedly above the Central Bank of Brazil’s 3.25% target for the year. Looking at the details of the release, the pick-up was primarily driven by prices for transportation rising at a faster pace, marking the strongest growth since July 2022. Headline inflation accelerated for a third consecutive month in September. An unfavorable base effect, higher Bolsa FamÃlia payments spurring domestic demand and lower interest rates will likely drive inflation in the coming months.
Still, the trend pointed down slightly, with annual average inflation coming in at 4.9% in September (August: 5.1%).
Lastly, consumer prices rose a seasonally adjusted 0.26% over the previous month in September, largely in line with the 0.23% increase logged in August. September’s figure was the highest since April.