Brazil: Inflation rises in September

Consumer prices rose 0.48% in September over the previous month, contrasting August’s 0.09% fall. Higher prices for transportation drove the increase.

Inflation rose to 4.5% in September from 4.2% in August, which marked the highest reading since March 2017. Inflation is within the Central Bank’s target of 4.5% plus or minus 1.5 percentage points. Annual average inflation rose from 3.1% in August to 3.3% in September.

Brazil Inflation Forecast

Panelists participating in the LatinFocus Consensus Forecast see inflation closing 2018 at 4.1%, which is unchanged from last month’s forecast. For 2019, the panel expects inflation of 4.2%.