Brazil: Inflation inches up in January

Consumer prices rose 0.32% in January over the previous month, accelerating from December’s 0.15% increase. The result was largely due to higher prices for food and beverages.

Inflation inched up to 3.8% in January from December’s 3.7%. Inflation has remained moderate in recent months due to an appreciation of the real, cuts in government-controlled prices and economic slack. Annual average inflation was unchanged at December’s 3.7% in January.

Brazil Inflation Forecast

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2019 at 4.2%, which is unchanged from last month’s forecast. For 2020, the panel expects inflation of 4.1%.