Brazil 2017 Inflation Rate Lowest Since 1998


Consumer prices in Brazil increased 2.95 percent year-on-year in December of 2017, following a 2.8 percent rise in November. Figures came above market expectations of 2.8 percent, reaching the highest inflation in six months. Still, the cumulative inflation for 2017 was 2.95 percent compared to 6.29 percent in 2016. It is the lowest reading since 1998 and below the central bank target of 4.5 percent ± 1.5 p.p.

Year-on-year, prices rose faster mainly for housing (6.26 percent compared to 6.05 percent in November) and transport (4.1 percent compared to 3.98 percent). On the other hand, food cost continued to fall (-1.87 percent compared to -2.3 percent). 

On a monthly basis, consumer prices increased 0.44 percent, above 0.28 percent in November and forecasts of 0.3 percent. It is the highest monthly rate since August of 2016, mainly due to a 1.23 percent jump in transport prices, namely air fares (22.28 percent), gasoline (2.26 percent) and ethanol (4.37 percent). Cost of food and non-alcoholic beverages went up 0.54 percent and made the second largest upward pressure, namely meat (1.67 percent), fruit (1.33 percent), chicken (2.04 percent) and French bread (0.67 percent).

Brazil 2017 Inflation Rate Lowest Since 1998


IBGE | Joana Taborda | joana.taborda@tradingeconomics.com
1/10/2018 11:32:58 AM