Brazil Inflation


Brazil: Inflation inches down from nearly 12-year high in August

September 10, 2015

Consumer prices in August increased 0.22% over the previous month. The print was below the 0.62% increase recorded in July and undershot market expectations of a 0.23% rise. In addition, the print marked an over-one-year low. The monthly result was driven largely by higher prices for transportation as well as for food and beverages.

Inflation eased from 9.6% in July, which had marked the highest rate since November 2003, to 9.5% in August. Despite the decrease, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%. Inflationary pressures have risen dramatically since the beginning of the year despite consistent hikes in the Central Bank’s SELIC interest rate.

LatinFocus Consensus Forecast participants see inflation closing 2015 at 7.8%, which is up 0.3 percentage points from last month’s forecast. For 2016, the panel expects inflation of 5.6%.

Author: Angela Bouzanis, Senior Economist

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Brazil Inflation Chart

Brazil Inflation August 2015

Note: Annual and monthly var. of IPCA consumer price index in %.
Source: Brazilian Institute of Geography and Statistics (IBGE).

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