Brazil: Inflation jumps in June
July 6, 2018
Consumer prices rose 1.26% in June over the previous month, the sharpest increase since January 2016. The result was above May’s 0.40% rise. Higher prices were seen in almost all subcategories of the index due to goods shortages as a result of the truckers strike that began at the end of May.
Inflation jumped from 2.9% in May to 4.4% in June, the highest reading since March 2017. As a result, inflation is now near the Central Bank’s target of 4.5% plus or minus 1.5 percentage points. Annual average inflation was inched up from 2.8% in May to 2.9% in June.
Brazil Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2018 at 3.7%, which is unchanged from last month’s forecast. For 2019, the panel expects inflation of 4.2%.