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.
Author: Lindsey Ice, Economist