Brazil: Inflation inches up in December
January 10, 2014
Consumer prices rose 0.92% in December over the previous month. The print was above both the 0.54% increase recorded in November and market expectations of a 0.82% rise. Prices rose in five of the nine categories monitored, with transportation recording the highest increase.
Annual headline inflation increased from 5.8% in November to 5.9% in December. Inflation is still within the Central Bank's tolerance margin of plus/minus 2.0 percentage points around the target of 4.5%.
The Central Bank sees inflation at 5.7% at the end of this year. LatinFocus Consensus Forecast participants see inflation closing 2014 at 5.9%, which is unchanged from last month's forecast. For 2015, the panel sees inflation at 5.5%.
Author: Carl Kelly, Economist