Brazil: Inflation remains stable in February
March 4, 2011
In February, consumer prices rose 0.80% over the previous month. The reading, which was slightly below market expectations of a 0.85% increase, followed on a 0.83% increase in January and broadly matched the 0.78% rise recorded in February 2010. As a result, annual inflation remained unchanged at 6.0%, which is above the Central Bank's target for a sixth consecutive month. The increase was driven by higher prices for education, due to the start of the academic year in the southern hemisphere. The seasonal increase in education prices accounted for more than a half of the total price increase. Food and beverages, which account for more than 20% of the consumer price index, increased only 0.23% in February (January: +1.16% month-on-month). Moreover, transportation prices also increased at a slower pace (January: +1.55% mom; February: +0.46% mom).