Brazil: Inflation reaches year-high in June
July 8, 2014
Consumer prices rose 0.40% in June over the previous month. The print was virtually in line with both the 0.46% increase recorded in May and market expectations of a 0.39% rise. Seven of the nine categories that comprise the consumer price index registered increases in June with the strongest increases tallied in personal expenditures and health services. Conversely, price drops were registered in food and beverages as well as in health services.
Annual headline inflation inched up from 6.4% in May to 6.5% in June, marking the highest inflation rate since June 2013. As a result, inflation has reached the upper limit of the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around its target of 4.5%.