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.