Brazil: Inflation pushes towards Central Bank?s target upper limit
April 7, 2011
In March, consumer prices rose 0.79% over the previous month. The reading, which followed on a 0.80% increase in February, was above both market expectations of a 0.70% increase and the 0.52% rise recorded in March 2010. As a result, annual inflation stepped up to 6.3% (February: 6.0%), which sits above the Central Bank's target of 4.5% ( 2.0 percentage points) for a seventh month in a row. The monthly increase was driven by higher transport costs, which rose 1.56% over the previous month. Moreover, higher food prices also fanned the pronounced reading, increasing 0.75% over February. The Central Bank revised its inflation forecast for this year from the 5.0% previously expected to 5.6%.