Brazil: Inflation stable in June
November 11, 2011
In October, consumer prices increased 0.43% over the previous month, which was below the 0.53% increase recorded in September and slightly above market expectations of a 0.41% rise. The result mainly reflected higher food and transportation prices mitigated by lower prices for household articles. Annual headline inflation dropped from 7.3% in September to 7.0% in October, moderating 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.