Brazil: Inflation rises to six-year high
September 6, 2011
In August, consumer prices added 0.37% over the previous month, which was above the 0.16% increase tallied in July but in line with market expectations. The rise mainly reflected higher food prices, which soared 0.72% month-on-month, contrasting the 0.34% decline in July. As a result, annual headline inflation rose from 6.9% in July to 7.2% in August, the fastest pace in more than six years, and remains above the tolerance margin around the Central Bank's target of 4.5% ( 2.0 percentage points) for a fourth straight month. Despite mounting inflationary pressures, the Central Bank expects inflation to decline to 5.8% by the end of 2011 and to 4.8% by the end of 2012.