Brazil: Inflation increases to an 8-month high in March
April 9, 2014
Consumer prices rose 0.92% in March over the previous month. The print was above both the 0.69% increase recorded in February and market expectations of a 0.85% rise. Prices increased in all but one of the nine categories monitored, with prices for food and beverages registering the strongest increase. Annual headline inflation increased from 5.7% in February to 6.2% in March, which marked the highest inflation rate since July 2013. Inflation is still within the Central Bank's tolerance margin of plus/minus 2.0 percentage points around its target of 4.5%. The Central Bank sees inflation at 5.6% at the end of 2014. For 2015, the Bank sees inflation closing the year at 5.4%. LatinFocus Consensus Forecast participants see inflation closing 2014 at 6.1%, which is up 0.1 percentage points from last month's forecast. For 2015, the panel sees inflation at 5.8%.