Brazil Inflation December 2019


Brazil: Inflation jumps in December

January 10, 2020

Consumer prices jumped 1.15% in December over the previous month, up from November’s 0.51% increase. The result marked the largest month-on-month increase in a year and a half and was above market expectations of a 1.08% increase. Strong price gains in food and beverages, and transport drove the increase. Higher food costs were primarily due to a surge in meat prices.

Inflation spiked to 4.3% in December from 3.3% in November, representing the highest reading in seven months and slightly overshooting the Central Bank’s target of 4.25% for the end of 2019. Annual average inflation, meanwhile, was stable at 3.7% in December. Inflationary pressures should continue to intensify moving into 2020 due to higher food price pressures and electricity price hikes.

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2020 at 3.8%, which is unchanged from last month’s forecast. For 2021, the panel also expects inflation of 3.7%.

Author:, Economist

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Brazil Inflation Chart

Brazil Inflation December 2019

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

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