Brazil: Inflation slows for first time in 14 months
October 20, 2011
In October, consumer prices (as measured by the mid-month consumer price index, IPCA-15) increased 0.42% over the previous month, which was below the 0.53% increase recorded in September and only slightly lower than market expectations of a 0.45% rise. The result mainly reflected higher prices in the food and clothing categories. As a result, annual headline inflation decelerated from 7.3% in September to 7.1% in October, easing for the first time since August 2010. That said, inflation remains above the tolerance margin of the Central Bank's target of 4.5% ( 2.0 percentage points) for a sixth straight month. The Central Bank expects inflation to decline to 6.4% by the end of 2011 and to 4.7% by the end of 2012.