Brazil: Inflation jumps in March
April 10, 2019
Consumer prices rose 0.75% in March over the previous month, accelerating from February’s 0.32% increase and overshooting expectations of a softer 0.63% rise. The reading marked the largest jump in prices recorded in March since 2015. A jump in transportation prices as gasoline price hikes by Petrobras transmitted to consumers drove up price pressures as well as a sharp increase in food prices.
Inflation rose to 4.6% in March, notably up from February’s 3.9% and the highest reading since October. The result is above the Bank’s target of 4.25% for the end of 2019. Annual average inflation also edged up from February’s 3.8% to 4.0% in March.
Brazil Inflation Forecast
Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2019 at 4.0%, which is unchanged from last month’s forecast. For 2020, the panel expects inflation of 4.1%.