Brazil: Inflation soars in June
July 8, 2015
Consumer prices in June increased 0.79% over the previous month. The print was above the 0.74% increase recorded in May but undershot market expectations of a 0.83% rise. The monthly increase was driven by higher prices for personal expenses—which recorded a significant increase compared to last month due to a rise in prices for gambling as a result of the recent price increase in the Mega-Sena lottery. In addition, prices for transportation rose compared to last month.
Headline inflation rose from 8.5% in May to 8.9% in June, which marked the highest rate since December 2003. As a result, inflation remains far above the Central Bank’s tolerance margin of plus/minus 2.0 percentage points around 4.5%.