Brazil: Inflation hovers at historically low level in January
Consumer prices in January rose 0.29% over the previous month, below December’s 0.44% rise. January’s reading undershot analysts’ forecast of a 0.41% rise. Cheaper prices for electricity were largely behind the drop as heavy rains have boosted power generation and allowed the government to cut rates.
Inflation came in at 2.9% in January, matching December’s result. Prices pressures are at a historic low in the country and below the Central Bank’s target of 4.5% plus or minus 1.5 percentage points. Annual average inflation fell to 3.3% in January, from 3.5% in December.