Brazil: Inflation rises in March, breaching the Central Bank's target range
April 10, 2013
In March, consumer prices increased 0.47% over the previous month, which was below both the 0.60% rise recorded in February and market expectations of a 0.50% price increase. The rise was mainly driven by higher prices for food and beverages.
Annual headline inflation rose from 6.3% in February to 6.6% in March, the highest reading observed in 16 months. As a result, inflation is now above the Central Bank's target of 4.5% with a tolerance margin of plus/minus 2.0 percentage points.
The Central Bank expects inflation to moderate to 5.7% by the end of this year and to ease further to 5.3% by the end of 2014. LatinFocus Consensus Forecast participants see IPCA inflation closing 2013 at 5.6%, which is unchanged from last month's forecast. For 2014, the panel sees inflation at 5.5%.