Brazil: Inflation rises to three-month high in August
September 9, 2016
Consumer prices in August increased 0.44% over the previous month. The print was below the 0.52% increase recorded in July and was in line with market analysts’ expectations. The slowdown was driven by slower growth in food prices, which had pushed up July’s reading.
Inflation in August rose to a three-month high of 9.0% from July’s 8.7%. Although inflation has fallen overall this year, price pressures still remain high despite a backdrop of recession. Inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.