Inflation in Brazil
Brazil - Inflation
Inflation dips slightly in December, remains above 10%
Consumer prices increased a seasonally-adjusted 0.73% from the previous month in December, which was below the 0.95% rise seen in November but nonetheless marked the 19th month of rising prices. Looking at the details of the release, prices for transport grew at a markedly slower pace, while contrastingly, food and beverages costs rebounded after falling in the previous month.
Inflation eased to 10.1% in December from 10.7% in November, which had marked the joint-highest inflation rate since January 2016. Meanwhile, the trend pointed up, with annual average inflation coming in at 8.3% in December (November: 7.8%).
Commenting on the outlook, Solange Srour and Lucas Vilela, economists at Credit Suisse, see inflation remaining high in the coming years:
“We maintain our forecasts for IPCA inflation of 6.0% in 2022 and 3.8% in 2023. Inflation in Brazil is highly inertial, as many prices are contractually or implicitly linked to past inflation. Furthermore, sharp increases in input costs (e.g., fuel, electricity, and food prices) and prices frozen during the pandemic (e.g., educational courses and healthcare plans) are likely to be an important source of inflation pressure, despite the reduction in demand and increase in economic slack.”
Panelists participating in the LatinFocus Consensus Forecast see inflation ending 2022 at 4.9%, which is unchanged from last month’s forecast, and 2023 at 3.5%.
Brazil - Inflation Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Inflation Rate (CPI, annual variation in %) | 9.0 | 8.7 | 3.4 | 3.7 | 3.7 |
Brazil Inflation Chart
Source: Brazil Institute of Geography and Statistics.
Brazil Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 6.79 | -0.82 % | Dec 31 |
| Exchange Rate | 4.02 | -0.13 % | Jan 01 |
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Economic News
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Brazil: Economic activity records best reading since February in November
January 17, 2022
Economic activity rose 0.7% month-on-month in seasonally-adjusted terms in November, contrasting October’s 0.3% fall and marking the first month of growth after four consecutive periods of contraction.
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Brazil: Retail sales growth rises in November
January 14, 2022
Retail sales expanded 0.6% in month-on-month seasonally-adjusted terms in November, which was above October's 0.2% increase.
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Brazil: Inflation dips slightly in December, remains above 10%
January 11, 2022
Consumer prices increased a seasonally-adjusted 0.73% from the previous month in December, which was below the 0.95% rise seen in November but nonetheless marked the 19th month of rising prices.
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Brazil: Industrial activity contracts slightly in November
January 6, 2022
Industrial output fell 0.2% month-on-month in seasonally-adjusted terms in November (October: -0.6% mom).
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Brazil: Manufacturing PMI remains in contractionary territory in December
January 3, 2022
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) came in at 49.8 in December, matching the print from November which had marked the lowest level in 18 months.
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